Energy groups will help Italy cover funding needs of 2027 budget, minister says

Italy Will Rely on Energy Groups to Help Fund 2027 Budget, Minister Confirms

Government Budget Plans and Energy Sector Contributions

Energy Groups' Role in Budget Funding

ROME, Oct 28 (Reuters) - Italian energy groups will be forced to help the government cover the funding needs of next year's budget, Italy's Energy Minister Gilberto Pichetto Fratin said on Wednesday.

The ​cabinet will meet on Wednesday at 1400 GMT to approve the last budget under Prime Minister Giorgia ​Meloni before national elections due in 2027.

Minister's Statement on Energy Producers

"Energy producers will make a contribution," the minister told a gathering of Confindustria Energia, the energy sector's main industry lobby.

Budget Details and Funding Options

Italy aims ​to fund tax cuts and spending hikes worth around €23.5 billion ($26.13 billion) in 2027.

Potential Tax Measures

Options being discussed include higher corporate taxes on financial firms and companies that produce, distribute, and supply energy products.

Ongoing Discussions

"I am unable to either confirm or deny [this], because discussions are currently underway between the economy ministry and the cabinet office to make this kind of assessment," Pichetto Fratin added.

Income Tax Reforms

Speaking at a separate event, Foreign Minister Antonio Tajani said the government was working to expand Italy's 33% bracket for income tax to people earning up to €55,000 per year, helping middle-income workers.

Current Tax Rates

Italy applies a 33% tax rate to annual income between €28,000 and €50,000, while income above €50,000 is taxed at 43%.

Exchange Rate

($1 = 0.8993 euros)

(Reporting by Giuseppe Fonte; Editing by Alexandra Hudson)