Giancarlo Giorgetti outlines Italian budget goals and vehicle tax cuts

Italian Economy Minister Giancarlo Giorgetti has outlined key objectives for the upcoming budget maneuver, focusing on tax relief for the middle class and addressing the energy emergency. During meetings in Dublin and via video link at the Portofino Talks, Giorgetti emphasized that the next economic plan will not be conservative.

A major component of the government's strategy involves the abolition of vehicle registration taxes (bollo) for cars and motorcycles with up to 80 Kw of power. This measure, estimated by Palazzo Chigi to affect 70% of vehicles (excluding company and rental cars), is currently set for the 2027 calendar year via decree. However, Giorgetti expressed the intention to make this tax cut structural in the next budget law, provided necessary funding is secured. The government may utilize residual funds from the National Recovery and Resilience Plan (PNRR), though the European Commission must evaluate the measure's compatibility with EU rules.

Regarding inflation, Giorgetti attributed the issue to supply shocks rather than economic overheating, noting that restrictive monetary policies from the ECB and Federal Reserve may not fully resolve the problem. He warned that ongoing global conflicts could drive inflation higher. Additionally, the Minister noted that the government is awaiting upcoming Istat data to finalize fiscal decisions.