Susanna Riva On Tuesday, October 27, 2026, Prime Minister Giorgia Meloni called her allies from Forza Italia , the League , and Noi Moderati to lunch to review the draft budget currently being finalized. The meeting, held in Rome after the Palazzo Chigi summit , anticipated the decisions the Council of Ministers will make tomorrow on the budget law.
Tax proposals aimed at young people
Center-right parliamentary sources confirmed that the personal income tax cut for the middle class has been temporarily shelved: there is no tax relief for incomes above 50 euros . In its place, the government is preparing a package of measures for young people, including a no-tax zone extended to those under 25 and a 5% flat tax for new hires under 35 during their first five years of employment.
The goal is to facilitate entry into the job market, facilitate access to credit for purchasing a first home, and encourage starting a family.
Details on the flat tax
The proposal provides that young people with their first job will benefit from a flat rate of 5% on salary increases, with a possible extension to income tranches of up to 55 thousand euros.
An alternative version, supported by Forza Italia , suggests extending the no-tax area up to 30 years , but the government parties have not yet reached a definitive agreement.
Discounts for large families and seniors
Among the measures under discussion, the extension of the car tax exemption to family vans stands out. The proposal, already evaluated by the State General Accounting Office , would allow the exemption for vehicles with 6 to 9 seats and power up to 133 kW for families with at least four children. Currently, the exemption is limited to a single vehicle per family and a maximum power of 80 kW.
Card for healthcare expenses for the elderly
Another initiative aims to create a card specifically for seniors to reimburse medical expenses not covered by the National Health Service, including dental care. This measure, yet to be defined, should reduce the burden of healthcare bills for the most vulnerable segments of the population.
Pension fund and exit flexibility
The government is evaluating a dedicated fund of less than one billion euros to be included in the budget, intended to finance flexible pension exit arrangements starting in 2027. The allocation will be established by January, during the closed budget session, and will then be implemented through a specific provision.
Debate on early retirement
The League insists on the possibility of bringing forward retirement to 64 , but the opposition within the center-right has expressed reservations about the financial sustainability of such a measure. The debate is still ongoing, and the final decision will also depend on opposition pressure and beliefs about budgetary responsibility.
Tensions with the banking sector and other challenges
The next step for Prime Minister Giorgia Meloni will be to mediate between the various demands, including the request for a €5 billion contribution to banks. ABI President Antonio Patuelli criticized the prospect of a new tax, arguing it would hit savers and harking back to past banking crises .
Meanwhile, Meloni's recent visits to Kuwait have resulted in four agreements, including the renewal of the fuel price cap and a letter of intent between Leonardo and the Kuwaiti Ministry of Defense . The price cap agreement with Eni could help stabilize fuel prices, thus reducing pressure on Italian families.
The 2027 budget focuses on three main areas – young people , families , and pensions – but will still have to overcome obstacles related to available resources, requests from banks, and internal disagreements within the government bloc.