"This is a budget that I consider very serious and balanced, and should be read in line with previous ones. It's worth €18.7 billion, making it more moderate than previous ones. But the complex situation also weighs heavily," said Prime Minister Giorgia Meloni at the press conference at Palazzo Chigi after the Cabinet meeting that approved the budget. The Prime Minister emphasized the law's cornerstones: "family and birth rates, tax cuts, support for businesses, and healthcare."

WORKING MOTHERS – On the subject of families, Meloni announced, "we are dedicating approximately €1.6 billion more" and, among other things, "we are excluding primary residences from the ISEE calculation, subject to the cadastral value limit." Furthermore, the bonus for working mothers will be increased from €40 to €60 per month.

INCOME TAX RATE AT 33% – In the law, Meloni explained at a press conference together with Finance Minister Giancarlo Giorgetti, "we are intervening on income tax, focusing on the middle class with a measure costing approximately €2.8 billion, and allocating €1.9 billion to wages to exempt productivity bonuses and holiday and night shifts." A cut from 35% to 33% in the tax rate for incomes between €28,000 and €50,000 is planned for 2026, a measure costing approximately €2.8 billion.

CONTRACT RENEWALS – Furthermore, the low-wage labor market will be addressed by "stimulating contract renewals for incomes up to €28,000," and it is expected that "the 5% rate will be applied to the increased portion for both renewals in 2026 and 2025." Furthermore, Palazzo Chigi explained, the taxation of productivity bonuses will be cut from 5% to 1%, raising the threshold for bonuses subject to the substitute rate from €3,000 to €5,000.

BUSINESSES – "For businesses, we're talking about around €8 billion in investments," the Prime Minister then emphasized, adding: "I know entrepreneurs expected more, but we've made a significant effort with a total of €8 billion, which can increase."

SCRAPPING – Minister Giorgetti spoke about the new tax bill write-off: "The write-off lasts nine years with bimonthly installments of the same amount, open to all those who have declared but not paid. It is not a pardon for those who have been dishonest" by not declaring anything. "We discussed a minimum installment of €100, but for now we have decided against it," the minister added.

PENSIONS – For minimum pensions, "we have planned a monthly increase of 20 euros, following the controversy over last year's 6 euros, which, moreover, was based on the inflation index," Giorgetti later announced.

Regarding the retirement age increase, "the extension is confirmed with an additional month starting in 2027 and another two months starting in 2028," the minister continued. "Parliament will be able to change things in 2027, but for now it's two months," he added.

COVERAGE – The bulk of the budget will come, Palazzo Chigi further explained, "from spending cuts by the Presidency of the Council and the Ministries."

(Unioneonline/lf)

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