Politics · Italy · 8 hrs ago
Italy’s budget plan sparks coalition dispute over pensions and tax
Italy’s government has announced its budget plan, but the full text is expected over the weekend.
The plan has sparked a dispute inside the governing coalition after the League said it would end the Fornero pension law, while a Brothers of Italy lawmaker urged waiting for a stronger economy before pension reform.
The plan would extend a flat tax to self-employed people earning up to €100,000 and cut income tax for people earning €50,000 to €55,000.
Union calculations show a sharp gap in the tax benefits: a self-employed person earning €100,000 would save about €10,000 a year, compared with about €100 for an employee earning €51,000.
Prime Minister Giorgia Meloni defended the plan as a set of choices, while opposition politicians and the CGIL union said it offered too little support to many workers and pensioners.
Parliament is due to receive the text next week, with hearings planned from 5 to 12 November and a possible deadline for proposed changes on 17 November.
Italy’s budget plan has exposed divisions within the governing coalition over pension reform and tax measures.
Fratelli d’Italia has cautioned against the League’s claims that the Fornero pension law will be overcome.
The CGIL union says the proposed tax measures would benefit higher-earning self-employed people far more than many employees.
Prime Minister Giorgia Meloni defended the budget as a set of choices rather than a broad distribution of funds.
Parliamentary hearings are planned for November 5 to 12, with a possible deadline for amendments on November 17.
- Who
- Italy’s governing coalition, including Fratelli d’Italia and the League, is divided over the budget plan. The CGIL union and opposition politicians have also criticised its measures.
- What
- The budget plan has sparked disagreement over pension reform and the distribution of tax benefits.
- When
- The article was published on October 29, 2026. The draft was expected between Saturday and Sunday.
- Where
- Italy.
- Why
- Coalition parties disagree over pension reform, while critics say the tax measures favour some self-employed people over employees.
Fratelli d’Italia
League
Pension reform
Fratelli d’Italia
Fratelli d’Italia says pension reform should wait until Italy’s economic situation is more settled.
League
The League says the Fornero law will be overcome, according to the article.
Use of pension fund
Fratelli d’Italia
Fratelli d’Italia deputy Marco Osnato suggested using the 850 million euro fund to help workers in arduous jobs.
League
The League is unlikely to give up its campaign on pension reform, the article says.
ANSA reported that the budget plan was due to be adopted by the Council of Ministers within 24 hours.
The budget text was expected to arrive, according to the article.
Parliamentary hearings on the budget were scheduled.
The deadline for amendments was being considered.
- Flat tax threshold
- Up to 100,000 euros
- Tax-cut income range
- 50,000–55,000 euros
- Self-employed person’s gross income
- 100,000 euros
- Employee’s gross income
- 51,000 euros
- Pension fund
- 850 million euros
- Proposed amendment deadline
- November 17
What people are saying
We have chosen to stand with those who work, those who have children, those who want to stay.
It gives no answer to 92% of workers and pensioners.
There is no fundamental opposition.
The budget penalises employees and middle-income pensioners.