Italy's 2026 Budget: A Balancing Act Amid Criticism

Italy's Parliament approved a 2026 budget focused on reducing the deficit to 2.8% of GDP. The budget, valued at about 22 billion euros, faced opposition for not addressing low wages and high taxes. Approximately 25% of its funding comes from the financial sector, which has raised concerns.

Italy's Parliament has given the green light to the government's 2026 budget, a financial plan intending to slash the nation's deficit to 2.8% of GDP. This move adheres to the European Union's economic mandates, with the budget estimated at 22 billion euros.

Despite its approval, the budget drew significant criticism from the centre-left opposition. Critics argue that it falls short of addressing crucial issues such as inadequate salaries and oppressive taxes, which plague Italy's working class.

The financial sector bankrolls about a quarter of the budget, triggering tax hikes on banks and insurance companies. The European Central Bank warned that these levies might further restrict credit access for families and businesses.

(With inputs from agencies.)