Domestic Policy
Presidency of the Republic: President Sergio Mattarella, speaking at the international event “Dare to Peace” organised by the Community of Sant’Egidio, emphasised that peace must be sought, nurtured, and even dared, echoing the event’s title. Citing Pope Leo XIV, he recalled that true peace requires disarming hearts and words. Mattarella then echoed the Pope’s recent appeal during his visit to the Quirinal Palace, urging continued commitment to restoring peace across the world.
European Affairs: In an interview published in La Stampa, Minister for European Affairs Tommaso Foti (Fratelli d’Italia) urged banks to understand that “the budget manoeuvre will allow us to return to surplus ahead of schedule,” with positive effects also on interest rates. On the Budget Law, Foti stated that “Forza Italia and Lega have no grounds for complaint,” while responding to objections from the ABI, he clarified that “there is no taxation on excess profits in the budget,” adding that “bringing the deficit-to-GDP ratio below 3% will be a major advantage for Italy.” On justice, Foti said that “amending the Constitution according to the prescribed procedures means applying it, not violating it.”
Foreign Policy
USA-China: In Kuala Lumpur, the United States and China reportedly reached a preliminary agreement on revising tariffs and the sale of TikTok’s US operations, marking a possible step towards easing tensions after months of friction. The agreement, announced by Chinese Vice Minister Li Chenggang, paves the way for a summit between Trump and Xi Jinping in South Korea. Among the topics discussed were the postponement of Chinese export restrictions on rare earths and the resumption of US soybean purchases. The negotiations, described as “constructive,” could open the door to a new phase of stable economic cooperation.
Ukraine: Russia claims new military successes, asserting it has encircled thousands of Ukrainian soldiers in the Donetsk and Kharkiv regions. On television, Vladimir Putin appeared in military uniform during a visit to a command centre, where he received reports on the “critical situation” facing Ukrainian forces. General Valery Gerasimov announced the successful test of the new nuclear missile “Burevestnik,” capable of covering 14,000 km and striking “highly protected targets at any distance.” Putin described it as “invincible.” Information on the test and the front, according to Kirill Dmitriev, has been communicated to the United States.
Economy and Finance
Budget Law: The Budget Law, recently approved by Parliament, is expected to undergo changes on several fronts: short-term rentals, corporate dividend taxation, and pensions for law enforcement personnel. The planned increase in retirement age will be withdrawn, while adjustments linked to life expectancy may also be revised. Concerns are emerging over municipal finances and cuts to ministries, particularly Infrastructure, with accusations that the Strait Bridge project is being prioritised over metro systems. Confindustria is calling for corrections on taxation, tax credits, and the guarantee fund for small and medium-sized enterprises, warning of a “double taxation” that the country cannot afford.
Banks: Major Italian banks are preparing to close a strong quarter, with profits estimated at around €6 billion in the third quarter of 2025. Unicredit recorded record profits of €2.6 billion, while Intesa Sanpaolo is expected to reach €2.3 billion, supported by its integrated structure. Following are Banca Popolare dell’Emilia-Romagna, Banco Bpm, and Monte dei Paschi, with positive results expected despite the slowdown in lending. Meanwhile, the Mediobanca shareholders’ meeting, where Monte dei Paschi now holds the majority stake, will mark the end of the Nagel-Pagliaro era and the arrival of Melzi d’Eril and Grilli, with the goal of achieving €700 million in annual synergies.