Italy’s Senate approved the 2025 budget law, reaffirming measures that include a reduction in the tax wedge and a simplified three-tier income tax system. The legislation, advocated by Minister of Economy Giancarlo Giorgetti, emphasizes fiscal prudence amid substantial debt challenges. Key initiatives include the introduction of a rewarding corporate income tax, funding for major infrastructure projects like the Bridge over the Strait of Messina and the high-speed railway, and a 100 million euro fund for local interventions, often referred to as the ‘pocket law’.