This paper analyses the characteristics and the effects of fiscal policy of centre-left and centre-rights governments on the Italian public budget in the period 1995-2005.The paper will also discuss the Financial Law approved by the centre-left government in 2006. The centre-left governments followed, in the 90’, a tax and spend policy that had favourable effects on government budget, but not on the structure of public expenditure in a direction favourable to growth. On the other hand the centre-right government has not followed the policy that one could expect from a conservative government, a decrease in the level of taxation and of public expenditure. The centre-right government reduced, in the period 2100-2006, slightly fiscal pressure, but has increased public expenditure, adjusted for the cycle, relative to centre left government. The effect of such policy was a worsening of the government budget, a rise in the ratio between public debt and gross product, and an increase in the gap between. the rate of growth of GDP of Italy and of the UE community.The Financial Law 2007 approved by the centre-left government in 2006 will surely improve substantially public accounts but there are some doubts that will improve growth perspectives.