Parliament’s green light for the next economic measure. The House and Senate approve the budget deviation and the majority resolution on the public finance planning document (DPFP). This is how we move towards the latest budget law of the Meloni government in office. But how much can you really spend? Around 10 billion are needed to finance “strong” interventions in 2027. Above all, the new Irpef cut, but also pensions and support for salaries and bills.
In fact, the government aims to use almost 29 billion of European flexibility in the two-year period 2027-2028, but mainly destined for energy and defense. For armaments, the EU Commission also gave the OK to the Italian Safe plan for defense investments, with a request for financing of more than 8 billion euros, in the form of loans.
Because the maneuver depends on Europe: the issue of the 29 billion
The government has asked to use the so-called national escape clause, a mechanism provided for by European rules that allows, in exceptional circumstances, to temporarily increase public spending beyond the path agreed with Brussels.
“I don’t know if we’ll make it”
Giancarlo Giorgetti
The Italian request concerns two sectors: energy and defense, for approximately 14.4 billion euros each in the two-year period 2027-2028. Overall, it is almost 29 billion, equal to 0.6% of GDP for each of the two years, in loan. Giorgetti specified that we must wait for the formal approval of the Council of the EU and clarify with the Commission which energy interventions may fall within the exemption. “I don’t know if we’ll make it”, admitted the minister, explaining that the final configuration of the budget law will depend precisely on this negotiation.
The government also aims to exit the European procedure for excessive deficit. According to the DPFP, the Italian deficit should stand at 2.9% of GDP in 2026, and then rise to 3.4% in 2027 and 3.2% in 2028 considering the use of the clause. Without the effects of the requested flexibility, the programmatic values would be 2.8% and 2.6% respectively.
Bills, families and businesses: Giorgetti challenges Brussels on aid
The report presented by the government indicates various areas of intervention for the approximately 14.4 billion expected over the two-year period. Contributions and support measures are envisaged for consumers and families which must be compatible with the conditions established by the European Union. And it is precisely on this point that Giorgetti insisted during the parliamentary hearing: “We would like there to be the possibility of using the Nec also to meet the needs of families”.
The minister contested the possibility of a negative response from the European Commission. “If in Europe they say no, there’s no problem, families should put up with it, well, in my opinion it’s a wrong choice”, he declared, referring to the consequences of increases in energy prices.
Measures aimed at encouraging the use of public transport are envisaged for students. For businesses, the interventions indicated concern the containment of energy costs, production from renewable sources and decarbonisation, including through a new Energy Release, photovoltaic, hydroelectric and biomethane. Energy efficiency measures are also planned in public buildings, healthcare and school facilities, as well as railway investments linked to sustainable mobility.
Salaries and Irpef: why the new 2027 cut is at risk
A reduction in Irpef has already come into force with the 2026 Budget Law: the rate applied to the income bracket between 28 thousand and 50 thousand euros has dropped from 35% to 33%, with a maximum benefit of 440 euros per year, before any sterilization mechanisms.
The government would like to take a further step, but there is the problem of coverage. The Deputy Minister of Economy Maurizio Leo has confirmed several times the objective of extending the 33% rate to the income range between 50 thousand and 60 thousand euros, currently subject to the marginal rate of 43%. However, the funds remain to be found.
Meloni looking for 10 billion for the budget: cuts to pensions, banks and new taxes
Thus the new IRPEF cut for the middle class risks not being included in the 2027 budget: a measure which, in the hypothesized configuration, would guarantee a maximum theoretical saving of 1,000 euros per year per taxpayer. With the hypothesis of extending the 33% from 50 thousand to 60 thousand euros, compared to the current rate of 43%, the additional theoretical savings would be:
| Annual taxable income | Theoretical annual savings |
| €30,000 | €0 |
| €40,000 | €0 |
| €50,000 | €0 |
| €52,000 | €200 |
| €55,000 | €500 |
| €58,000 | €800 |
| €60,000 | €1,000 |
| €70,000 | €1,000 |
What is already planned? The 2026 Budget Law had introduced some benefits with effects also in 2027, such as the 1% substitute taxation of productivity bonuses and sums paid to private workers as profit sharing, within an overall limit of 5 thousand euros and in compliance with the established requirements.
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The situation is different with the 5% taxation of salary increases resulting from certain contractual renewals: the current measure concerns increases paid in 2026. An extension to 2027 would require a new provision.
Pensions 2027: what changes already from January and what is missing
From 1 January 2027 the ordinary age for the old-age pension will rise to 67 years and one month, while in 2028 it will reach 67 years and three months, according to the provisions already implemented by the INPS. The contribution requirements for the ordinary early pension also change. In 2027, 42 years and 11 months will be required for men and 41 years and 11 months for women, without prejudice to the exceptions provided for certain categories of workers.
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The adjustment does not apply, in the cases provided for by law, to some categories engaged in demanding or particularly tiring and heavy activities. On the front of early exits, it is necessary to verify the necessary coverage. The current legislation has extended the Social Ape until 31 December 2026, while Quota 103 and Women’s Option have not been renewed due to new maturations of the requirements in 2026.
Banks, insurance and new taxes: where the government looks for money
If the European space is mainly used to finance energy and defence, with what resources will the other measures be paid for? It is the central problem of the next budget law. According to the Parliamentary Budget Office, in 2027, net of interventions attributable to the escape clause, the government has zero room for manoeuvre.
To finance the new IRPEF cut or introduce other benefits, it will therefore have to identify more income or reduce other expenses. Policy hypotheses include new contributions from banks, insurance companies and energy companies. Deputy Prime Minister Matteo Salvini has indicated a target of up to 5 billion euros for the financial sector, while discussions continue within the majority and with the categories involved.
Giorgetti, when asked about the possibility of asking for further resources from companies, confirmed the government’s orientation: “All those who have the opportunity to contribute will contribute”.