Economy Politics Country 2025-11-18T22:20:03+00:00

Italy's Government Conflict Over Tax Reform

Italian PM Giorgia Meloni faces a sharp government debate over a tax cut proposal for the middle class, sparking criticism and revealing coalition tensions.


Italy's Government Conflict Over Tax Reform

This conflict has revealed tensions within the ruling coalition, as well as between Rome's financial ambitions and the strict constraints on Italy's public finances. Italian Prime Minister Giorgia Meloni has plunged her government into a sharp debate with her proposal to cut taxes for the so-called 'middle class'. This move has been welcomed by her supporters, but critics see it as risking favoring high-income groups under the guise of broader tax relief. In a public address, Meloni stated that her government is seeking to pass the 2026 budget bill, which includes a reduction in the personal income tax rate for those earning between 28,000 and 50,000 euros, from 35% to 33%.