On December 28th, the Italian parliament finally approved the 2025 budget just days before the year-end deadline, which is an important victory for Prime Minister Meloni. Meloni and his Finance Minister Giorgetti jointly developed a tax reduction plan aimed at winning the support of voters while complying with the EU’s fiscal rules. The government plans to reduce the national deficit to 3.3% of next year’s GDP and lower it below the EU mandated 3% ceiling by 2026. At the last minute, adjustments were made to the budget, including the decision to maintain the cryptocurrency tax rate at 26% in 2025 and increase it to 33% in 2026, instead of the initially proposed 42%. The Italian Prime Minister has promised to reduce taxes for the middle and low-income groups, which will help consolidate his ruling position. However, this also means that according to EU standards, the pace of returning to fiscal stability will be slower.
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