ROME — The Italian Parliament formally endorsed the government’s 2026 budget legislation on Tuesday, implementing deficit-reduction measures aligned with European Union fiscal requirements. The €22 billion ($25.9 billion) economic package successfully cleared its final legislative hurdle in the lower house with a 216-126 vote, securing approval from Premier Giorgia Meloni’s conservative coalition government.
The budgetary framework aims to compress Italy’s deficit to 2.8% of GDP in 2026, representing a reduction from the previously projected 3% threshold. This adjustment responds directly to EU mandates for strengthened fiscal discipline among member states. In a post-vote statement on social media platform X, Premier Meloni characterized the budget as “serious and responsible,” emphasizing its design to channel constrained resources toward supporting families, workforce development, business enterprises, and healthcare infrastructure amid challenging economic conditions.
Nevertheless, the legislation has provoked substantial opposition criticism. Center-left political factions, particularly the Democratic Party led by Elly Schlein, condemned the measures as excessively austere and inadequate for addressing Italy’s deepening wage stagnation and elevated tax burdens. Schlein asserted the government’s approach fails to deliver meaningful relief for low-income households and workers grappling with persistent inflation.
Notably, approximately one-quarter of the budget’s financing derives from increased taxation targeting financial institutions, including banks and insurance companies. This revenue strategy has drawn cautionary remarks from the European Central Bank, warning that additional banking levies might further constrict credit availability to Italian families and businesses already experiencing limited access to financing.