Italy was hit by a nationwide strike on 12 December 2025 as the CGIL union led mass protests against the government’s proposed 2026 budget, which includes tax cuts, welfare reforms, and higher defence spending ahead of key parliamentary debates.
Thousands of people across Italy joined a nationwide strike on 12 December 2025, organised by Italy’s main union, CGIL (Italian General Confederation of Labour), to oppose the government’s proposed 2026 budget.
The protest comes ahead of parliamentary debates scheduled for next week, with the budget required to receive final approval before the end of the year.
Italy’s 2026 draft budget introduces several tax measures, including a new three-year tax credit for businesses operating in special economic zones, with EUR 100 million allocated to support simplified logistics zones between 2026 and 2028.
Measures affecting banks and insurers confirm their contribution by changing deductions, deferred tax assets, IRAP, and equity-related tax incentives.
The budget also allows taxpayers to settle unpaid tax debts up to the end of 2023 through lump-sum or long-term instalments, extends exemptions from plastic and sugar taxes until the end of 2026, boosts funding for the “Nuova Sabatini” programme, and cuts the second personal income tax rate from 35% to 33% for incomes up to EUR 200,000.
From January 2026, low-income pensioners will receive a EUR 20 monthly increase. However, this comes as the government reforms its welfare system by phasing out the basic income scheme introduced in 2019. The programme, which supported around 1.7 million households at an average of EUR 550 per month, is being replaced by more restrictive benefits intended to push recipients into work.
CGIL, which represents about five million workers and pensioners, has criticised the government’s new budget, warning it will worsen living and working conditions. Along with other unions, CGIL opposes higher defence spending and instead calls for greater investment in healthcare, education, and measures to raise wages and pensions.
Under the new rules, people deemed able to work will receive approximately EUR 350 per month for up to one year, provided they participate in training schemes. The changes have sparked controversy, especially after approximately 160,000 people were informed that their payments would be reduced.
Additionally, Italy plans to gradually raise defence spending after exiting the EU’s excessive deficit procedure, its defence minister said, as the country works toward meeting NATO’s new target of allocating 5% of GDP to defence, up from its current level of about 2%.
People also protested against the government’s economic agenda and its backing of Israel.
Earlier, Italy’s Council of Ministers approved the draft 2026 state budget and the 2026–2028 multi-year budget on 17 October 2025, following the presentation of the draft Budget Plan by the Ministry of Finance on 14 October 2025.
