Politics · Italy · 13 hrs ago
Italy weighs hiring tax breaks as parties debate pensions and income tax
Italy’s government is preparing its next budget, and tax breaks for hiring young people and women have broad support among governing parties.
The proposals could let companies claim deductions of up to 140–150% for hiring younger workers, or up to 180% for young mothers, but the details are still under review.
The parties disagree over pension changes and income-tax cuts, as well as other requests for support.
The government wants the European Commission to allow some energy funds to help households and businesses with bills, which could free money for other budget measures.
Meeting all the parties’ requests would require an estimated €4–5 billion in 2027, but the Treasury has not identified where to find it.
The government is also considering a €5 billion levy on banks and insurers, while the budget bill is delayed and is expected to go to the cabinet next week.
Italy is considering tax breaks for employers hiring young people and women as part of its next budget.
The proposed hiring deductions could reach 140% to 150% for younger workers and 180% for young mothers.
Parties in the governing majority remain divided over pension changes and cuts to personal income tax.
The League and Forza Italia have made separate demands on pensions, tax rates and support for older people.
The government is seeking funding for the measures, while Italy also seeks more flexibility from the European Union on energy spending.
- Who
- Italy’s governing parties and government are weighing budget measures; the proposals include hiring incentives for young people and women.
- What
- The government is considering employer tax breaks alongside debated pension and income-tax changes.
- When
- The proposals are being considered for the 2027 budget.
- Where
- Italy.
- Why
- The government wants to support hiring and address demands from governing parties, but it is seeking funding for the measures.
This story does not have two clearly opposing sides.
A European Commission spokesperson said talks with Italy on using greater flexibility for energy measures had been productive.
Matteo Salvini restated his priorities on pension eligibility and the flat-tax threshold for self-employed people.
Corriere della Sera reported that hiring incentives for young people and women were under consideration.
- Young-worker hiring deduction
- Up to 140%–150%
- Young mothers’ hiring deduction
- Up to 180%
- Energy funds
- €14.4 billion in deficit spending earmarked for energy in 2027–28
- Salvini’s pension proposal
- Allow some workers to retire at 64, with benefits calculated entirely under the contributory system
- Flat-tax revenue threshold
- Proposed increase from €85,000 to €100,000 per year
- Budget requests
- At least €4–5 billion in 2027 to meet the two parties’ requests
What people are saying
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