The Meloni government will approve its budget law for 2027 this Wednesday, as announced by the Minister of Economy, following successful talks with the European Union (EU) for the granting of a temporary and partial increase in budgetary rules under the National Escape Clause.
This mechanism allows incurring a higher deficit to strengthen defence allocations and fund investments aimed at the ecological transition. However, Italy intends to use part of this margin to help families cope with the rising energy costs.
Italy plans tax cuts and spending increases worth €23.5 billion in 2027, part of which will be financed through a special tax on financial companies and likely also on energy groups.
Thus, Italy expects its deficit to rise to 3.4% next year, up from the 2.9% projected for 2026, and fall to 3.2% in 2028.
