Hardware Ready Ready to Bench?
The 2027 budget law was brought to the attention of the Council of Ministers convened on October 28, 2026. The text, which represents the fifth budget measure of the Meloni government, has an initial amount of €23.5 billion. Prime Minister Giorgia Meloni described the situation as nearing completion, with the goal of balancing support for purchasing power and healthcare with the need to keep public accounts under control, taking into account the high national debt.
Why it matters
The budget introduces a specific package for young people, which includes a 5% flat tax for new hires under 35 and tax deductions for companies hiring young staff, with rates between 140% and 180%. For the middle class, the discussion on reducing IRPEF (personal income tax) remains open: Forza Italia indicated an objective income threshold of €55,000, but the intervention is defined as a “missing piece” not yet definitive in the final text. On the pension front, a fund of €1 billion is planned for early retirement flexibility, while the estimated cost for early exit at 64 years with contributory recalculation hovers around €1.5 billion. Banks are called to contribute approximately €5 billion, a figure that according to Economy Minister Giancarlo Giorgetti has not yet been shared by credit institutions.
The numbers
- Total amount of the budget: €23.5 billion.
- Fund for early retirement: €1 billion.
- Contribution requested from the financial sector: approximately €5 billion.
- Available resources net of flexibility for energy and defense: €9 billion.
- Extra flexibility for energy and defense: over €14 billion (of which €14.4 billion are expected as extra-deficit in 2027).
- Flat tax rate for new hires under 35: 5%.
- Lump-sum regime threshold: increase from €85,000 to €100,000.
What remains to be understood
Negotiations with the European Commission on energy flexibility were defined as “practically concluded” by Minister Giorgetti, but final details remain pending formal confirmation. The IRPEF cut for the middle class is not yet established in the definitive text and could undergo changes during parliamentary examination, with the possibility that the text may be introduced to the Chamber of Deputies as early as Tuesday. Furthermore, the meeting between the government and banks regarding the €5 billion contribution was denied by Abi president Antonio Patuelli, leaving uncertain the path for collecting these resources. The S&P rating assessment is expected on November 13.
Sources: ANSA Economia, ANSA Economia, AGI Economia, FIRSTonline, Repubblica Economia.
This article is for informational purposes only and does not constitute financial advice or an investment recommendation.
* Content created with the assistance of artificial intelligence systems.