The 2025 budget maneuver introduces a comprehensive set of financial reforms aimed at reshaping the economic landscape. These reforms include cuts to the tax wedge, adjustments to personal income tax (Irpef), and incentives for families.
The centerpiece of this initiative is the wedge and Irpef cuts, which are projected to benefit 1.3 million additional workers compared to the previous year. The income threshold for these benefits has been raised, allowing for bonuses of up to €20,000 and deductions reaching €40,000. The new tax structure stabilizes Irpef rates across three brackets:
Additionally, resources are allocated to support low-income individuals and facilitate the purchase of essential goods through a dedicated card program. These measures reflect a concerted effort to alleviate financial pressures on households while stimulating economic activity.
To address declining birth rates, the budget introduces a one-time €1,000 bonus for families with an annual income (Isee) below €40,000 for each newborn. This initiative is designed to encourage family growth and is now available to all families, not just those with existing children under ten. Furthermore, the nursery bonus has been made structural, ensuring ongoing support for families with young children. Parental leave has also been enhanced, increasing the compensation rate to 80% for a duration of three months, up from the previous two months.
The budget also addresses pension reforms, with a modest increase in minimum pensions set to rise to €617.9 in 2025, a mere €3 increase from the current rate. This adjustment has sparked debate, particularly as it coincides with the extension of exit flexibility measures such as Quota 103, Ape sociale, and Opzione donna for the upcoming year. Female workers with four or more children will benefit from an early retirement option, allowing them to retire 16 months sooner than their male counterparts. To encourage longer workforce participation, the government is enhancing the Maroni bonus, which allows eligible workers to receive their contributions directly in their paychecks.
The budget maneuver includes various incentives for businesses, particularly in the Mezzogiorno region, where tax credits for investments are renewed. Additionally, tax breaks are extended to promote the employment of young people, women, and disadvantaged workers. The productivity bonus tax break has been increased to 5%, while fringe benefits for new hires relocating more than 100 kilometers are also enhanced. Moreover, the budget introduces reductions for night work and overtime in the tourism sector, aiming to stimulate growth in this vital industry. However, travel and entertainment expenses will face stricter regulations, as only traceable payments will be eligible for deductions, ensuring greater transparency in business expenditures.
The government plans to collect €4 billion from banks and €1 billion from insurance companies through a series of tax adjustments. These measures include the postponement of tax deductions for 2025 and 2026, which will be gradually recovered until 2030. Additionally, the tax on digital services will be expanded to encompass all entities generating revenue in Italy, while capital gains tax on crypto assets will see a significant increase from 26% to 42%. These changes reflect a broader strategy to enhance revenue generation from the financial sector while adapting to the evolving landscape of digital finance.
Healthcare funding is set to receive a substantial boost, with allocations of €1.3 billion for 2025, €5.1 billion for 2026, and €5.8 billion for 2027. Despite these increases, healthcare professionals have expressed dissatisfaction, prompting the government to introduce bonuses for regions that successfully manage waiting lists.