Italy’s 2025 budget bill has reached the Senate, commencing its legislative process on Monday, with a final vote scheduled for December 28. The law, which encompasses a total of €30 billion, received the House’s final approval on December 20. However, discussions are limited in the Senate due to tight deadlines aimed at preventing a provisional budget if the bill is not approved by the end of the year. The text of the budget is largely fixed, leaving little room for amendments.
The Senate is set to discuss the budget bill on Friday, December 27, with the deadline for amendments having passed on December 23. The Budget Committee will reconvene at 11 AM to examine approximately 800 amendments proposed by the opposition. However, sources suggest that the committee may conclude its work without passing the mandate to the rapporteur, allowing the majority in the Assembly to invoke a confidence vote to dismiss opposition amendments. Reports indicate that the majority has not submitted any requests for changes, suggesting that the budget, effectively arriving in a sealed form, will likely move toward a confidence vote, with a final vote expected on December 28.
Key highlights of the budget include the continuation of the labor cost cut and the introduction of a three-bracket personal income tax (Irpef), which are being made structural changes. These two measures account for nearly 60% of the budget. Other notable provisions involve adjustments to Irpef deductions based on the number of children for incomes above €75,000, a bonus for newborns, and increased minimum pensions, which will rise by just €3. Additionally, a new family support initiative will provide funding for extracurricular activities for children aged 6 to 14 from families with an ISEE income of up to €15,000. Companies that set aside at least 80% of their 2024 profits for reinvestment will benefit from a reduced corporate tax rate.
