As expected, the wait for the new Budget Law has turned into a merry-go-round of tensions, crossed vetoes and trips within the majority itself. And the round of amendments has not yet begun.
The protagonists are ministers Tajani and Salvini, who have different visions on two crucial issues: the taxation of short-term rentals and the contribution of the banks. On each of these issues, Lega, Forza Italia and even Fratelli d’Italia face each other as adversaries rather than allies. The Ministry of Economy, meanwhile, is trying to sew an ever shorter blanket, with the ECB’s scissors ready to intervene and the opposition’s spotlight on it.
It is not only clearly the Budget, but it is also a test of political strength, as Giorgia Meloni celebrates the third longest-serving mandate in the history of the Italian Republic.
Maneuver, the issues to be resolved in the majority
The budget law has not yet arrived in Parliament, but the atmosphere is already heavy, and it will be long considering that we are still in October. The circulation of a draft of 137 articles sparked debate among the majority, highlighting differences on multiple fronts. Some points, such as the contribution of the banks, are still the subject of discussion, while others, such as the tax on short-term rentals, have already raised cross-cutting reactions.
The Ministry of Economy is working on the final corrections before the text reaches the Senate. Meanwhile, talks continue with the Italian Banking Association (ABI), to clarify the most delicate issues and seek an agreement on the most contested measures.
As expected, the government will then have to send the text to the European Central Bank, which will express a technical opinion.
Split political front on the tax on short-term rentals
The tax on short-term rentals is one of the most discussed measures of the budget. From 2026 the tax on income from tourist rentals will increase from 21% to 26%.
According to the government, the objective is to push towards long-term rentals and contain distortions of the tourist market, especially in large urban centres.
Within the majority the issue divides. The League considers the measure wrong and penalizing, especially for those who invest in the hospitality sector, while Forza Italia says it is ready to ask for changes during the parliamentary examination.
The measure aroused the irritation of Forza Italia, which claims to have discovered it only after the diffusion of the technical texts. “We were not informed, we read it in the drafts,” explained the Italian spokesperson Raffaele Nevi, judging it “a profoundly wrong choice”.
Salvini spoke out on the topic, and said:
It doesn’t seem like a good way to support internal demand and private initiative.
Confconstruction also underlines that “if the objective is to encourage stable rentals, those who choose short-term rentals cannot be punished”.
According to the Azzurri, the rule would end up mainly affecting small owners and widespread tourism in the villages, penalizing those who supplement their income with tourist rentals.
Salvini and Tajani, the comparison on the banks
The hot topic, however, is another. In fact, on the bank levy, the fracture between the majority allies is worsening. Salvini relaunches his line:
The banks make profits, he said again, I think they can make a small contribution of 5 billion to help domestic consumption and family incomes. If they still complain it won’t be 5, but 6 or 7 billion, because it’s something you can’t hear.
Antonio Tajani’s response was immediate, urging caution:
I don’t think we should have a punitive attitude. Apart from the fact that there is not just one party in government, there are three; therefore, it is not that one decides for the others.
Fratelli d’Italia is positioned along the same lines, which with the group leader in the Chamber Galeazzo Bignami excludes new levies on extra profits: the objective, he explains, is to create “conditions of co-interest”, with a lowering of the maximum rate from 40 to 28 percent.
