Italy approves new electoral reform and budget framework

The Italian Parliament has approved a significant electoral reform law, passed in its third reading with 227 votes in favor and 164 against. The new proportional system includes a governability premium: any coalition or list that secures more than 42% of the votes in both the Chamber of Deputies and the Senate will receive 70 additional seats in the Chamber and 35 in the Senate. If no group reaches this threshold, seats will be distributed proportionally without a majority premium.

The reform introduces several structural changes, including the return of candidate preferences, allowing voters to express up to three preferences for candidates following the blocked party leader. This shift is expected to move political campaigning from a purely national focus toward more localized, territory-based strategies. Additionally, the law allows students, workers, and caregivers residing in different regions to vote in their place of residence.

Parallel to the electoral changes, the government is advancing its 2027-2029 budget framework. The plan utilizes the European national safeguard clause to allocate approximately 28.8 billion euros toward defense and energy security. While the government seeks a moderately expansive maneuver for 2028 and 2029, it faces internal pressure from coalition partners regarding tax cuts and pension reforms.