Overview
- The cabinet cleared the 2026 budget worth about €18–18.7 billion, confirming a cut of the second IRPEF bracket from 35% to 33% for middle incomes, with annual savings up to roughly €440.
- Around €2 billion in 2026 is directed to wages by reducing taxes on productivity bonuses to 1%, detaxing night and holiday shifts, and encouraging contract renewals with a lowered rate for lower earners.
- Family and health measures include raising the monthly working‑mothers bonus from €40 to €60, revising ISEE to exclude the primary home within a cadastral limit, and adding €2.4 billion to healthcare with targeted hires and pay increases.
- Pensions see the planned age increase partially neutralized only for arduous jobs in 2027–2028, a gradual rise for others, and a €20 monthly boost to minimum pensions, alongside the continuation of selected early‑exit schemes.
- Budget coverage relies on an agreed sector contribution from banks and insurers of about €4.4 billion in 2026 and over €11 billion in three years, plus roughly €5 billion from PNRR reprofiling and more than €2 billion in ministry cuts next year, with parliamentary and EU reviews to follow.