Il contribution from banks and insurance companies to the maneuver it won't be a one-off. It is the most relevant – but not the only – novelty that emerges from the Budget planning document sent during the night to the European Commission and the Italian Parliament and available on the Ministry of Economy websiteThe bill also confirms that the postponement of the retirement age increase starting January 1, 2027, will apply only to workers performing strenuous and physically demanding jobs. It also promises tax breaks on the supplementary salaries of public administration employees, as well as resources for caregivers and workers with at least two children.
Banks and insurance
By 2026, banks and insurance companies will have to pay out a total of 4,4 billion. These resources, together with the remodeling of the National Recovery and Resilience Plan (PNRR), will contribute "to the financing of the budget, on the revenue side," according to the Public Finance Document. Specifically, "the measures affecting the financial and insurance sectors" will amount to 0,19% of GDP in 2026 and in 2027 (4,3 billion per year) and 0,10% (2,3 billion) in 2028. In total over the three-year period, this will reach 11 billion euros.
But the most important news comes from the DPB table relating to the impact of the measures which clearly indicates that the contribution from banks and insurance companies will not be a one-off. It is therefore assumed that the measures being considered by the government are structural in nature, despite strong resistance from the financial sector. Two days ago, the Italian Banking Association (ABI) expressed its support for the postponement of the DTAs, as established in last year's budget law, rejecting any proposal that would impact banks' income statements or capital. There will be until tomorrow (or Monday at the latest) to negotiate, but in the meantime: credit institution securities continue to lose ground on the stock market.
“The crux of the matter is the banks' unwillingness to contribute with further measures, beyond the deferral of the DTAs. Among the hypotheses that have been circulating and which would not be welcomed by the sector, is that of releasing with a more favorable taxation of undistributed profits in 2023. If mandatory, the measure would not be popular with banks, but if optional, it would not guarantee revenue for coverage,” explain analysts at Intermonte.
The other covers
To cover the measures contained in the budget, 7 billion euros will be added to the 4,4 billion coming from banks and insurance companies. remodulation of the PNRR and over 2 billion from cuts to ministries. Revising the National Recovery and Resilience Plan will allow the government to raise 0,22% of GDP next year, equal to approximately 5 billion euros, 0,03% in 2027, and 0,02% in 2028. Ministry cuts, on the other hand, will amount to 0,1% of GDP in 2026, 0,11% the following year, and 0,14% in 2028. Translated into figures: 2,3, 2,5, and 3,2 billion euros.
Personal income tax cut: limited benefits for higher incomes
The sterilization of the tax benefits resulting from the cut in the second tax bracket for higher incomes has been confirmed Irpef from 35 to 33%, although the limits have yet to be defined. "In terms of taxation, the government continues its drive to reduce income taxation since the beginning of the legislature. Specifically, the measure reduces the second IRPEF rate from the current 35 percent to 33 percent, limiting benefits for higher incomes”, says the Dpb.
Discounts on the additional salary of public employees
For the private employeesFrom January 1, 2026, a 10% flat tax could be introduced on salary increases established with the renewal of national contracts. But the DPB also foresees changes for civil servants. In order to encourage wage adjustment to the cost of living and strengthen the link between productivity and wages in the private sector, specific tax measures are envisaged for employees regarding contract renewals and performance bonuses. For the same purposes, in the public sector, a measure is envisaged tax relief on additional treatment", we read in the Budgetary Planning Document.
Arduous and strenuous work: Stop raising the retirement age.
The government's measure sent to Brussels confirms rumors circulating in recent days. The halt to the three-month increase in the retirement age, which will take effect on January 1, 2027, will affect only very few workers. In detail, "with reference to pensions, in the two-year period 2027-2028, it is confirmed, with the exception of heavy and wearing jobs, "The gradual increase in retirement eligibility requirements linked to life expectancy adjustments," it reads. The suggestions circulating in recent days regarding a one-month annual suspension for everyone are therefore being shelved.
Resources for caregivers and workers with at least 2 children
In terms of social policies, and in order to strengthen support for families, the Budgetary Planning Document establishes the refinancing for 2026 and 2027 of the "Card dedicated to you" intended for the purchase of basic food necessities. "Specific resources are allocated to the completion of the reform of the care and assistance role of the family caregiver”. The strengthening for next year of the measure already foreseen in 2025 has also been established for working mothers of two or more children holders of an annual income from work not exceeding 40.000 euros.
Businesses: Super-depreciation confirmed
Back the super depreciation for business support and innovation: the overall value is 4 billion euros for 2026. “Within the framework of the interventions aimed at supporting businesses and, more generally, innovation, in addition to the tax credit for businesses located in special economic zones (ZES) and that for simplified logistics zones (ZLS), a specific measure is envisaged to encourage investments in tangible assets through the increase in the acquisition cost valid for the purposes of their amortization. Furthermore, development contracts and the "New Sabatini", we read in the Dpb. "I believe that the path of hyper and super-depreciation is a good path, which in any case helps our businesses", said the number one of Confindustria yesterday, Emanuele Orsini, commenting on the maneuver.
Furthermore, its own is expected to be up to 31 December 2026, sterilization of the plastic tax and the sugar tax.
Building bonuses and ISEE revision
"The provisions regarding the deduction of expenses incurred for construction work and the exemptions for personal income tax (IRPEF) on land and agricultural income are extended to 2026, under the same conditions as those established for 2025," the document emphasizes. The renovation bonus remains at 50% on first homes and 36% from the second home onwards.
The Dpb "in order to facilitate access to certain subsidized benefits", also confirms the introduction of a revision of the rules for calculating the ISEE, providing for "increases in the equivalence scales for families with two or more children and'raising the threshold for exclusion from residential housing”, which will most likely be set between 75 thousand (request by Fdi) and 100 thousand euros (request by the League).
Defense spending
The Public Finance Document also mentions defense spending. “As clarified in the Dpfp, on 29 July Italy has already expressed its interest in resorting to the European Safe Financial Instrument (Security action for Europe), for an amount equal to approximately 15 billion”, we read in the text.
“The commitment to increase, in line with what has been agreed at international level, the level of spending on defence and national security as indicated in the DPFP, for a maximum amount equal to 0,5 percent of GDP in 2028, was confirmed by the resolutions with which Parliament approved the aforementioned Document,” the DPB adds. “This increase,” it continues, “would ensure compliance with international commitments and would be compatible with maintaining the deficit/GDP ratio below the 3 percent threshold throughout the entire period considered. The assessment of the request to activate the national safeguard clause is postponed to a later stage, also taking into account the objective of exiting the Excessive Deficit Procedure.”
