Key facts
- Italy plans to raise 10.7 billion euros from the financial sector by 2029.
- The financial sector contribution will be recurring, not a one-off measure.
- The government also plans to collect about 2 billion euros from the gaming sector by 2029.
- Spending cuts of around 5 billion euros are planned for government ministries.
- Italy's budget deficit is projected to reach 3.4% of GDP next year.
Italy plans to raise an additional 10.7 billion euros ($12.00 billion) from its financial sector over the 2027-2029 period to help fund its budget. The Draft Budgetary Plan, sent to EU authorities, indicates this will be a recurring contribution, amounting to 0.21% of GDP in 2027, 0.13% in 2028, and 0.1% in 2029. The contribution for next year alone is valued at over 5 billion euros. Economy Minister Giancarlo Giorgetti cited limited competition and benefits from ECB rate hikes and state guarantees as reasons for higher taxation on the financial sector. This new revenue stream is in addition to the 12 billion euros already expected from banks and insurers through 2028 via measures in the current budget, including a higher IRAP corporate tax band. The government also intends to collect approximately 2 billion euros from the gaming sector by 2029 and implement spending cuts of around 5 billion euros across ministries. The plan also includes tax cuts and spending hikes worth 0.98% of GDP or 23.5 billion euros in the upcoming budget, with Italy's budget deficit projected to rise to 3.4% of GDP next year from an expected 2.9% in 2026.