The upcoming budget maneuver, not yet officially underway, is already being shaken by the perennial debate over banks. Forza Italia has expressed strong opposition to what Economic Minister Giancarlo Giorgetti termed a “small pinch” for credit institutions. The minister argues that banks, having benefited from the decline in the spread between Italian and German bonds, should now translate those gains into support for families.
Deputy Prime Minister Antonio Tajani warned against any “blitz,” recalling that past interventions on windfall profits have intensely heated summer debates on the budget law. A coalition discussion on the measures has not yet taken place and is unlikely before September. However, majority parties and various ministries are already preparing their lists of demands and, if necessary, their vetoes. Banking remains a highly sensitive issue.
A minister from the Brothers of Italy party, Tommaso Fotti, noted caustically that announcements are one thing, but “actions… we will see if there are any.” Tajani was more trenchant, stating, “A country like ours cannot do without a strong banking system,” and therefore ruled out “pinches,” advocating for “dialogue” with institutions instead. He cautioned against “hunting” them, as it would equate to “hunting the Italian industrial and entrepreneurial system.” He emphasized the need to “avoid strange operations,” a stance Forza Italia is prepared to defend, as it has before.
The same firm opposition applies to a potential merger of professional pension funds into the national social security agency, INPS. Tajani vowed that “as long as Forza Italia is in government,” they will never enter INPS. This project is not currently on the table.
Meanwhile, on the pension front, the government is considering freezing the retirement age, which would otherwise automatically increase by three months in 2027. League undersecretary for labor, Claudio Durigon, announced he discussed this with Minister Giorgetti, who is available to include the measure in the budget law.
The League is also effectively ready to abandon the “Quota 103” early retirement scheme, which Durigon admitted has proven to be a “non-optimal instrument for flexible exit.” Efforts are instead focusing on strengthening the second pension pillar to allow for early retirement at 64 with 25 years of contributions, provided the future pension is at least three times the minimum threshold. This may be extended to those who left their severance pay (Tfr) with their company, not just in pension funds.
To achieve “slightly stronger pensions” for those entirely in the contributory system, Durigon also announced a proposal to use “Tfr funds held at INPS.” On fiscal policy, he continues to push the League’s flagship measure: the “rottamazione” tax amnesty scheme for old unpaid bills. He acknowledged the cost, estimated at two to three billion euros, but assured that the financial details would be worked out.
This project could clash with another flagship idea, defended by both Forza Italia and Prime Minister Giorgia Meloni’s Brothers of Italy: a tax cut for the middle class. The economic head of Brothers of Italy, Marco Osnato, stated that reducing the rate from 36% to 33% for incomes up to €60,000 is a “achievable goal.” He added that while all the coalition’s projects represent “very shareable objectives,” they must be pursued within “the horizon of the legislature,” as the path to achieving them is “not always compatible with reality.”