Several ideas have already been put forward by the majority for the next economic maneuver, which will come into effect on January 1, 2027. The discussion revolves around the middle class, youth, eco-building, and high fuel prices. First and foremost, the Minister of Economy, Giancarlo Giorgetti, is already fully engaged with the upcoming Budget Law, balancing the need to keep debt under control – following the ECB’s interest rate hikes – with support for the middle class and fiscal policies favoring young people. Let’s start with the relaunch of the 5% flat tax to increase the paychecks of younger workers. Additionally, the government is already working on reorganizing a series of bonuses, including an idea proposed by Deputy Prime Minister Matteo Salvini, who wants to review and reform the ISEE.
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FLAT TAX FOR YOUNG PEOPLE
“We may be approaching the last Budget Maneuver, with great responsibility but also with the awareness that in such a difficult context, we must try to help and promote development and support the social classes and groups that so far have not received the attention they deserve,” declared the head of the MEF yesterday during a video call at the UDC celebration. “I think salary increases could be recognized by employers for young people under a certain age.”
For now, the exact age that young people must have to benefit from the paycheck increase is still to be decided among the majority parties. “I recall the great success of the Government’s initiative to apply a 5% flat tax on last year’s contractual increases. I believe this success can be transferred, with the necessary adjustments, to any salary increases granted to young people by companies. Obviously,” Giorgetti emphasized, “this requires the cooperation of employers and the willingness of the State’s Financial Administration to recognize this type of benefit, but I believe this can be worked on.” The flat tax initiative also seems to appeal to the opposition, which yesterday, through Davide Faraone, vice president of IV-Casa Riformista, welcomed the ministerial initiative. “This measure seems like a somewhat watered-down version of the proposal launched at last year’s Leopolda. It is reassuring to see that after so much inertia, the government has now decided to intervene,” Faraone said.
Yesterday, Deputy Prime Minister Antonio Tajani (FI) also spoke about the maneuver: “Enough with too many rules that serve no purpose, that are just shackles pleasing the many bureaucrats in Brussels. The same applies to our Italy. We have launched a campaign, we will continue, and one of the fundamental themes will be to eliminate shackles also from our electoral campaign,” Tajani added.
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TOO MANY RULES FOR THE EU
“When we talk about reducing tax pressure,” Tajani then clarified, “it is a twin word to reducing the bureaucratic burden, because that is what our country suffers from today.” The head of the MEF, Giorgetti, yesterday again claimed that the government has achieved results in terms of international standing on public finance management, without making interventions called austerity.” The Minister of Economy warned that “the recent interest rate increase by the ECB, to counter inflation, translates into higher costs for those in debt, such as families, businesses, and also the State. At times when rates rise, it becomes clear how important it is to keep debt under control and to be able to place it and have the trust of markets and savers.”
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Italy has over 3,200 billion euros of debt and must refinance 385 billion in 2026, and the budget discipline maintained by the government has been recognized by rating agencies, a point Giorgetti has proudly reiterated several times, considering the successes achieved. Since this could be the last maneuver of this government, the minister announced he will “make a sort of inventory of the measures adopted so far and how they have impacted, given the risk of duplicating measures on some income classes and excluding others.”
He outlined the direction to take for the Budget Law: “We want to continue to intervene selectively and as fairly as possible on reducing tax pressure on certain categories. The focus is entirely on the middle class, important not only economically but also politically.” There is also the urgency of high fuel prices, with gasoline at 2.1 euros and diesel at 2.2. The excise discount expires Thursday, and the government must decide whether to renew it or introduce more targeted measures. One option is a one-time 100 euro bonus below a certain ISEE threshold.
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ECOBONUS AND NEW ISEE
Meanwhile, the government is studying the return of the enhanced 65% ecobonus for windows, heat pumps and air conditioners, hybrid solar thermal systems, shading, and insulation. The government is considering a horizontal discount: 50% for primary residences and 36% for others. Finally, for Deputy Prime Minister Matteo Salvini, the watchword on bonuses is redistribution: “The ISEE needs to be reformed and a cap set for bonus collectors. Now the bonus pool needs to be expanded. Otherwise, the middle class will get closer and closer to the lowest rung of the ladder.” And in a few months, 60,000 public housing units will be allocated,” Salvini promised.
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