Lucrezia Ciotti The 2027 Budget is worth approximately €26 billion and introduces new measures for families, workers, young people, and retirees. After receiving the green light from the Council of Ministers, Giorgia Meloni outlined the main changes, from income tax cuts to rent relief, including childbirth incentives, healthcare funds, and measures to support businesses.
New investments are also planned for energy efficiency improvements in schools and hospitals, as well as increased contributions from banks, insurance companies, and other sectors to finance the measure.
Budget 2027, from income tax cuts to rent: new developments for citizens and young people
The Council of Ministers has given the green light to the 2027 Budget bill , an economic measure which, according to Prime Minister Giorgia Meloni , is worth approximately 26 billion euros.
During the press conference, the Prime Minister outlined the measures the government intends to implement to support purchasing power, encourage birth rates, and reduce certain costs for families and workers. Part of the resources will be used to maintain existing incentives , which are set to expire at the end of 2026, for an estimated value of approximately €9 billion.
Among the tax changes, the extension of the second income tax bracket to 33% up to €55 of annual income stands out. The maximum expected savings for affected taxpayers is €500 per year. Meloni explained that the measure represents a further step compared to previous tax cuts, noting that raising the threshold to €60 would have required significantly greater expenditure. " We will work to continue expanding the group of beneficiaries," the Prime Minister assured, identifying the middle class among those eligible for the measures.
The measure also addresses the issue of housing affordability , a particularly important issue for younger generations. For properties rented under agreed-upon rent agreements , the flat-rate tax will drop to 5%, while for leases to young people up to 35 years old, a 1% rate will be applied, according to the government announcement. Regarding birth rates, a pension fund for newborns has been introduced: INPS will open an individual account with an initial state contribution of €100, which can be supplemented by family members. The funds will remain tied up until the child reaches adulthood, barring exceptional circumstances, and can be used for university studies, starting a business, or supplementary pension provision.
The measure also includes an increase in paid parental leave to 80%: for families with a second child, the leave will be extended to a total of five months, while for those with at least three children, it will increase to six. According to the Prime Minister, the structural exemption from car tax for vehicles up to 80 kilowatts and for motorcycles has also been confirmed , a measure that should cover approximately 70% of vehicles on the road. Finally, it will be possible to request personalized license plates, subject to a fee.
Healthcare, schools, and the elderly in the 2027 Budget: new funding for public services
A significant portion of the measures concerns healthcare and improving public services. The National Health Fund will increase by €3,4 billion , reaching €146,3 billion in 2027. Part of the increase will be allocated to improving the salaries of doctors working in emergency rooms, considered essential for providing patient care. This allocation is complemented by a €300 social voucher for those over 75 with an annual pension of up to €28,000. The measure, which Meloni estimates could affect 5,5 million people, will be used for medications, specialist visits, and healthcare services not covered by the National Health Service. The cost indicated by the Prime Minister is €1,6 billion. Adding this measure to the new funding for public healthcare, the announced resources for the sector reach approximately €5 billion.
Initiatives related to the quality of public spaces include a plan to install air conditioning and heat pumps in schools, funded through a portion of the resources of the so-called NEC Energy Program. The same program will include measures to reduce energy consumption at universities, hospitals, and sports facilities , as well as investments in rail and sustainable mobility.
Economy Minister Giancarlo Giorgetti characterized the use of European flexibility as a result of negotiations with Brussels, emphasizing that the resources will be used for initiatives of general interest. The measures are expected to be implemented through calls for proposals in 2027, while funding should be disbursed starting in 2028. The government also announced a €1 billion contribution to contain the energy costs of small and medium-sized enterprises , complementing the mechanism already in place for energy-intensive companies.
On the fiscal front, Deputy Prime Minister Antonio Tajani announced the six-month postponement of the sugar tax and the plastic tax . The package also includes measures to benefit the self-employed, raising the flat tax threshold to €100, and measures for security, wages, and pension flexibility, as advocated by Deputy Prime Minister Matteo Salvini.
How the 2027 Budget will be financed: the contribution of banks and businesses
To support the new expenditures, the government is relying on a combination of contributions from various economic sectors and public spending cuts. Meloni indicated approximately €700 million for the energy sector and a similar amount for the gaming industry. Over €5 billion is expected to come from the financial sector , through measures involving banks and insurance companies, with specific protections for some smaller businesses and an increase in the Tobin tax. These revenues are in addition to savings of approximately €1 billion resulting from cuts to ministries . The prime minister acknowledged that no prior agreement has been reached with financial institutions, but expressed hope that the requested contribution will be accepted as a form of participation in the collective effort.
The budget must now continue its institutional process before the announced measures can become final. Amounts, requirements, and operational procedures will need to be verified based on the official text and any changes introduced during parliamentary review.