Giorgetti says Italy's car tax cut will be funded by unused Pnrr savings

At the Eurogroup gathering in Dublin, Economy Minister Giancarlo Giorgetti defended Italy's plan to scrap the automobile tax, saying the shortfall will be covered by savings generated from projects financed under the EU Recovery and Resilience Plan that were not fully spent. He emphasized that the unused amounts are EU loans that the Italian state can use for tax reductions, spending or budget improvements. The European Commission has said it will examine the proposal and provide a formal assessment in the upcoming EU semester of 2027.

Giorgetti highlighted that most of the Pnrr funds were loaned rather than grants, and any surplus after project completion can be treated as ordinary budgetary coverage. He also linked the discussion to ongoing talks on an EU-wide tax on excess energy profits, noting that national authorities retain the discretion to apply such taxes. The debate is set to continue at the Ecofin meeting on 9 October, with support from Germany’s Lars Klingbeil and a call for concrete options from the Commission.