Energy groups will help Italy cover funding needs of 2027 budget, minister says

ROME, Oct 28 (Reuters) - Italian energy groups will be forced to help the government cover the funding needs of next year's budget, Italy's Energy Minister Gilberto Pichetto Fratin said on Wednesday.

The ​cabinet will meet on Wednesday at 1400 GMT to approve the last budget under Prime Minister Giorgia ​Meloni before national elections due in 2027.

"Energy producers will make a contribution," the minister told a gathering of Confindustria Energia, the energy sector's main industry lobby.

Italy aims ​to fund tax cuts and spending hikes worth around €23.5 billion ($26.13 billion) in 2027.

Options being discussed include higher corporate taxes on financial firms and companies that produce, distribute, and supply energy products.

"I am unable to either confirm or deny [this], because discussions are currently underway between the economy ministry and the cabinet office to make this kind of assessment," Pichetto Fratin added.

Speaking at a separate event, Foreign Minister Antonio Tajani said the government was working to expand Italy's 33% bracket for income tax to people earning up to €55,000 per year, helping middle-income workers.

Italy applies a 33% tax rate to annual income between €28,000 and €50,000, while income above €50,000 is taxed at 43%.

($1 = 0.8993 euros)

(Reporting by Giuseppe Fonte; Editing by Alexandra Hudson)