Politics · Italy · 7 hrs ago
Italy weighs tax cuts for young people and middle-income earners
Italy’s governing coalition is working to agree next year’s national budget, with Prime Minister Giorgia Meloni and Economy Minister Giancarlo Giorgetti involved in the talks.
The government wants to focus limited funds on families, young people, older people, health care and energy costs.
One proposal would extend an income tax cut to people earning up to €55,000, though the measure would cost about €1.2 billion and depends on talks with the European Union.
For younger workers, officials are considering a one-year reduction in income tax deductions from pay, possibly for people under 30 or under 35.
Other ideas include a tax-free income threshold and measures to help young people enter work.
Giorgetti has cautioned that the budget cannot solve every challenge facing Italy, including demographic change and technology’s effects on workers.
The coalition aims to approve the budget next week, after further technical work and discussion with the EU.
Italy’s governing coalition is considering tax cuts for young people and middle-income earners as it prepares the next budget.
A proposed extension of the income-tax cut to earnings up to €55,000 could cost about €1.2 billion.
The coalition also discussed measures for young people, including lower income-tax deductions from pay for one year.
Other priorities include families, older people, healthcare and energy costs.
The government aims to approve the budget next week, subject to technical work and talks with the European Union.
- Who
- Prime Minister Giorgia Meloni, Economy Minister Giancarlo Giorgetti and other coalition leaders discussed the budget.
- What
- The government is weighing tax cuts for middle-income earners and young people, alongside other budget priorities.
- When
- The coalition met on October 22, 2026. It aims to approve the budget next week.
- Where
- Not stated
- Why
- The government says it wants to focus resources on economic and social priorities and support growth while maintaining financial stability.
This story does not have two clearly opposing sides.
An earlier coalition meeting was described as interlocutory.
Coalition leaders met for about two hours to discuss budget priorities and available resources.
The government aims to approve the budget, possibly on Tuesday or Wednesday.
- Proposed tax-cut threshold
- €55,000
- Estimated cost of cut to €55,000
- About €1.2 billion
- Estimated cost of cut to €60,000
- €2.6 billion
- Potential youth measure
- Lower income-tax deductions for under-30s or under-35s for one year
- Budget approval target
- Next week, possibly Tuesday or Wednesday
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What people are saying
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No Tax Area and a series of measures that can make it easier to enter the world of work
arrive at a synthesis