Italy's Foreign Minister and Deputy Prime Minister Antonio Tajani has firmly dismissed speculation about early elections, declaring the current executive stable and focused on delivering tax cuts that could reshape take-home pay for millions of workers. Speaking at a Forza Italia youth event in Montesilvano, Abruzzo, Tajani signaled that the government's priority is reducing the fiscal burden rather than heading to the polls.
Why This Matters
• No early vote: The next elections are expected in 2027, with the natural end of the legislature in autumn.
• IRPEF cut already active: Since January 2026, the middle income tax rate dropped from 35% to 33% for earnings between €28,000 and €50,000.
• Proposed expansion: Forza Italia wants to extend the 33% rate up to €60,000 in gross annual income through Budget Law 2027.
• Thirteenth salary relief: Plans are underway to detax the tredicesima, potentially putting €200–€500 more in workers' pockets each December.
A Government That's Going the Distance
The timing of Tajani's comments matters. Prime Minister Giorgia Meloni recently surpassed 1,412 days in office, making her government the longest-lasting in Italy's republican history. That record contradicts early predictions that this coalition would be fragile or transitional.
For residents accustomed to frequent political crises and snap elections, this stability has practical consequences. It means policy directions announced now have a genuine chance of implementation before the next ballot, currently projected for spring or autumn 2027.
Tajani's rejection of early elections wasn't casual rhetoric. The center-right coalition is navigating a delicate moment in the polls. While Fratelli d'Italia remains the country's single largest party at roughly 26–27%, the broader coalition is running neck-and-neck with the opposition "campo largo" at around 40–44%. The last thing the government needs is an unpredictable vote before essential fiscal measures are locked in.
The Tax Cuts Already in Your Paycheck
Let's separate what's already law from what's still political aspiration.
The 2026 Budget Law took effect on January 1, reducing the IRPEF rate for the second income bracket from 35% to 33%. What that means in practice: if you earn between €28,001 and €50,000 gross annually, you're already paying less income tax. The current brackets are:
• 23% for income up to €28,000
• 33% for income between €28,001 and €50,000
• 43% for income above €50,000
For a worker earning €45,000, this reduction translates to several hundred euros more annually—real money that affects monthly budgeting, grocery bills, or savings.
What's Coming: The 2027 Budget Proposals
Tajani outlined Forza Italia's ambitions for the next budget cycle, and they target middle and upper-middle income earners directly.
The headline proposal: extending the 33% IRPEF rate up to €60,000 in gross income. Under current rules, anyone earning above €50,000 hits the top 43% bracket on that portion of their income. Pushing that threshold to €60,000 would mean the higher rate only applies to income exceeding that level.
The potential savings? Up to €1,000 per year for earners in that €50,000–€60,000 band, though the benefit would cascade down through the progressive system, meaning even those earning above €60,000 would see some relief on their lower-bracket income.
The Thirteenth Month Question
Perhaps more immediately felt would be changes to Italy's tredicesima—the mandatory thirteenth monthly salary paid each December, typically before the holidays.
Currently, this payment gets hit with standard IRPEF rates but without the employment-related deductions that apply to regular monthly paychecks. The result: workers often take home less from their thirteenth than from a normal month, despite it being the same gross amount.
Government proposals under consideration include:
• A flat 15% rate for workers earning up to €15,000 annually
• A flat 10% rate for a broader group, potentially covering incomes up to €30,000
• Full exemption for the lowest earners, as Tajani has publicly advocated
The estimated benefit ranges from €200 to €500 depending on income level and which proposal advances. For families depending on the December payment for holiday expenses, winter heating bills, or year-end bonuses, this is concrete.
The Numbers Problem
Here's where political promises meet fiscal reality. Tax cuts cost money. Experts and opposition figures have consistently flagged the €1.8–€2 trillion in private savings sitting in Italian bank accounts as both an opportunity and a lightning rod.
Tajani has proposed channeling those savings toward infrastructure and public projects through public-private partnerships, freeing state resources for tax reductions. It's an ambitious idea that assumes Italians will invest rather than hoard cash—a cultural shift in a country where mattress savings remain common.
Opposition leader Elly Schlein of the Democratic Party has called for a wealth tax on large private assets, a proposal Forza Italia flatly rejects. This ideological divide on how to fund tax relief versus public services will define the political debate heading into 2027.
The "coverage problem"—finding the revenue to offset tax cuts—remains the crucial hurdle. The Budget Law negotiations late this year will reveal whether these proposals become law or stay political talking points.
What This Means for Residents
If you're living and working in Italy, here's how to read the situation:
Check your pay stub now. The IRPEF reduction from 35% to 33% for the €28,000–€50,000 bracket is already law. If you're in that range and haven't seen a difference, consult your payroll office.
Watch the autumn budget negotiations. The proposals for extending the 33% bracket and detaxing the thirteenth salary will be debated and decided in the 2027 Budget Law, typically finalized by year-end.
Don't count on early elections. Despite the political noise, Tajani's confirmation aligns with the practical reality: the government has incentives to complete its agenda before facing voters in 2027.
Budget for 2027 carefully. These measures, if passed, could mean €500–€1,500 more annually for middle-income households—significant, but not life-changing amounts. Plan accordingly rather than banking on dramatic changes.
The Road Ahead
The coming months will test whether political stability translates into policy delivery. Meloni's record-breaking longevity gives the coalition unprecedented runway to implement its agenda. But the narrow polling margins and the rise of General Roberto Vannacci's Futuro Nazionale party—now polling around 7–8%—add unpredictability to any electoral calculation.
Forza Italia, hovering around 7% in recent polls, has every incentive to deliver visible tax relief before the next campaign. Whether they can navigate the fiscal constraints and coalition compromises to make it happen remains the open question.
The one certainty: you'll be hearing much more about IRPEF brackets and tredicesime between now and the next budget cycle. For millions of Italian workers, those technical debates determine what lands in their bank accounts.
