Published by Global Banking & Finance Review®
Posted on October 17, 2025
1 min readLast updated: January 21, 2026
Add as preferred source on GoogleItaly's 2026 budget proposes €18.7 billion in tax cuts and spending hikes, focusing on defense and welfare, awaiting parliamentary approval.
ROME (Reuters) -Italy's 2026 budget contains tax cuts and spending hikes worth 18.7 billion euros ($21.86 billion), Prime Minister Giorgia Meloni said on Friday.
The government will assess tapping an EU escape clause aimed at boosting defence spending, and will avoid cutting welfare spending, Meloni told reporters after the cabinet approved the budget law that will now be presented to parliament for approval by year-end.
($1 = 0.8555 euros)
(Reporting by Giuseppe Fonte, wrinting by Claudia Cristoferi, editing Gavin Jones)
Tax cuts refer to a reduction in the amount of tax that individuals or businesses are required to pay, often aimed at stimulating economic growth and increasing disposable income.
The EU escape clause allows member states to temporarily deviate from certain fiscal rules in order to address exceptional circumstances, such as increased spending for defense or economic recovery.
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