Domestic Policy
Fiscal Policy: The debate over taxation of large fortunes returns to the forefront with the economic plan. The Meloni government, which has targeted bank profits and dividends to fund healthcare and the tax system, rejects any proposal for a wealth tax: “Never with the right in government,” said the Prime Minister. Elly Schlein accuses the executive of favouring the wealthy and increasing the tax burden. However, divisions emerge within the centre-left: the Democratic Party supports a European tax on large fortunes, while the Five Star Movement and Italia Viva oppose it. The only concrete proposal so far is that of Landini (CGIL): a 1.3% tax rate on fortunes exceeding €2 million, which would generate around €26 billion in revenue.
Public Administration: The Italian government is preparing to introduce a directive, to be presented by Minister Zangrillo, establishing new criteria for remunerating public managers, linked to productivity, results and accountability, avoiding unjustified increases. Following the Constitutional Court ruling that invalidated the 2014 salary cap, the government aims to restore pay based on objective parameters, without immediate increases, except for a few managers already above the previous limit. The new cap will be set at the level of the first President of the Court of Cassation (€311,000).
Foreign Policy
United States: The Supreme Court has ruled in favour of President Trump, allowing a 50% cut in food subsidies for low-income households. This further exacerbates the crisis caused by the federal shutdown, which has now lasted 39 days. Government paralysis has caused chaos in transport, with over a thousand flights cancelled and thousands of delays at airports in New York, Chicago, Boston and Las Vegas. Congress remains deadlocked over the budget: Republicans and Democrats clash over Obamacare and healthcare funding. Meanwhile, states are seeking independent solutions to ensure subsidies.
Ukraine: A massive wave of Russian attacks has destroyed much of Ukraine’s energy infrastructure, leaving the country virtually in the dark. Centrenergo power plants have been hit by a record number of missiles and drones, halting energy production. Severe damage has also affected the Dtek plant, while cities such as Kyiv and Kremenchuk suffer widespread blackouts. Moscow continues to launch air attacks, causing numerous civilian casualties. Zelensky is calling for new Patriot systems for defence. Despite the collapse of the thermal power sector, Ukraine is focusing on nuclear energy, imports and decentralised sources to survive the winter.
Economy and Finance
Italian Banking Association (Abi): From the Abi seminar in Florence, where banks met the press, it emerges that the Italian banking sector remains solid, but record results will not be easily replicated in 2026. Banks, despite being in good health, face declining interest margins and worsening credit quality, estimated at 3%. President Antonio Patuelli warns of uncertainties linked to falling interest rates, tariffs and difficulties in France and Germany. The Abi calls for a roundtable with the government and businesses to manage the post-Covid guarantee phase, as guaranteed lending drops to €119 billion. Healthy banks, Patuelli stresses, remain a sign of confidence for the country.
Underground Economy: According to the latest report by the Ministry of Economy and Finance (Mef), in 2022 the value added of the underground economy in Italy amounted to €182.6 billion, equivalent to 9.1% of GDP, stable compared to previous years. The overall tax gap, including tax and social security evasion, is estimated between €98.1 and €102.5 billion, slightly increased but with a declining share of GDP at 4%. Evasion has risen for IRPEF, Irap, VAT, Ires and rents, while social security evasion is between €8.4 and €11.6 billion. The fiscal gap related to IMU stands at €4.9 billion, with higher values in the South. The number of evaders of the Rai licence fee has decreased to 1.56 million, thanks to the “licence in the bill” system.