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[BUSINESS] · Italy · 39 sources

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Italy presents 2026 budget framework and defense spending plan

The Italian government has presented its Programmatic Document of Public Finance (DPFP) for 2026, outlining a budget framework that the Corte dei Conti described as prudent and compliant with European constraints. The document aims to bring net debt below the 3 percent threshold by 2026 to exit the status of a country under special observation.

Economy Minister Giancarlo Giorgetti announced a request for a budget deviation of approximately 29 billion euros to be utilized between 2027 and 2028. This funding, enabled by the national safeguard clause, is intended to support defense obligations and energy security measures. The deviation involves using 0.6 percentage points of GDP, split equally between defense and energy.

Key fiscal measures under discussion include extending the 33 percent Irpef tax rate to incomes up to 60,000 euros, a move expected to affect roughly one million taxpayers. The government also highlighted priorities such as supporting household purchasing power and addressing energy costs for families and businesses amidst international geopolitical uncertainty.

Entities

Bank of Italy · Corte dei Conti · European Commission · European Union · Giancarlo Giorgetti · Istat · Italian Government · Italy

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