Rome, December 30, 2025 – The Europe Today: Italy’s parliament has given final approval to the government’s 2026 budget, a key fiscal package aimed at reducing the country’s deficit to 2.8 percent of gross domestic product (GDP) and securing Italy’s exit from the European Union’s excessive deficit procedure.
The budget, which passed the lower house by 216 votes to 126 following earlier approval by the Senate, includes €22 billion in tax cuts and increased spending measures targeted at families, workers, and businesses. The government says the package is designed to support household incomes, boost employment, and strengthen economic resilience amid ongoing fiscal consolidation.
To offset the cost of these measures, the budget introduces higher taxes on banks, insurance companies, and certain financial transactions. It also imposes a new €2 levy on low-value parcels imported from non-EU countries, a move the government says is intended to protect Italy’s domestic fashion and manufacturing sectors, according to media reports.
Despite the approval, the budget has drawn criticism from opposition parties and some economists, who argue that the measures remain overly cautious and insufficient to address Italy’s long-term structural challenges. Public debt is projected to reach 137.4 percent of GDP, while economic growth is forecast at 0.7 percent in 2026, one of the lowest rates in Europe.
The government has defended the budget as a balanced approach that combines fiscal discipline with targeted support, stressing its commitment to maintaining market confidence while gradually improving Italy’s public finances.
