Italy Approves 2027 Budget With Higher Taxes on Banks and Energy Firms
Italy has approved a €26 billion budget package for 2027, combining tax cuts and increased public spending with higher taxes on banks, insurers, energy companies and the gambling industry. Prime Minister Giorgia Meloni said the measures aim to ease the tax burden on middle-income earners and self-employed workers while increasing funding for the national health service. The government expects the budget to push the fiscal deficit to 3.4% of GDP in 2027, up from an expected 2.9% in 2026.
Financial firms are expected to contribute more than €5 billion towards financing the measures, while energy companies and the gambling sector will each contribute around €700 million. The corporate tax rate for banks will rise from 27.5% to 30.5%, while insurers will face an increase from 24% to 27%. The budget also raises the income threshold for the 33% tax bracket to €55,000 annually and extends the 15% flat-tax regime for eligible self-employed workers to incomes of up to €100,000.
The government plans to use additional fiscal flexibility permitted under European Union rules to fund defence-related spending and green investments, including upgrades to climate-control systems in schools, universities, hospitals and sports facilities. The package also makes a reduction in road tax for many small and medium-sized cars permanent and allows motorists to purchase customised number plates for a fee. The budget marks Meloni’s final major financial plan before Italy’s election next year.
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