Economy Minister Giancarlo Giorgetti said the government has achieved results that once seemed impossible with its 2026 budget. He spoke after the Senate approved the bill on Tuesday, following weeks of rows and internal coalition wrangling.
The package totals about €22billion in new measures. A late government amendment added €3.5billion. The bill now moves to the Lower House for final approval before the New Year’s Eve deadline.
“We have addressed issues that seemed almost impossible,” Giorgetti told reporters in the Senate. He highlighted a 5% tax on collective contractual pay rises for lower-income workers, a long-standing union demand. Giorgetti also pointed to a 1% tax on productivity-related earnings as a signal of the government’s direction.
“This positive outcome shows the whole government backs the approach we began three years ago,” he said.
The 2026 budget sparked tensions within the ruling coalition. Changes to early state pension rules caused anger, including inside Giorgetti’s League party. The government later eased those measures, but criticism has continued.
Unions and opposition parties say the budget does too little to boost growth or fund the national health system. One headline measure cuts the second Irpef income tax band from 35% to 33%. The cut applies to annual earnings between €28,000 and €50,000.
The bill also includes extra levies on banks and insurers worth about €4.4billion.
