The Italian Council of Ministers has officially greenlit a 24 billion euro budget, as announced by Prime Minister Giorgia Meloni in a press conference.
In her address, Prime Minister Meloni emphasised the expeditious nature of the budget approval, taking a little over an hour, underlining the unity of purpose within the governing coalition. She highlighted that the budget, totalling just under 24 billion euro, combines 16 billion euro from additional revenue and the remainder from expense reductions. Meloni hailed the budget as a serious and realistic undertaking that doesn’t dissipate resources but concentrates them on critical priorities, in line with the government’s overarching vision, despite the complex economic landscape.
The Prime Minister acknowledged the intricacies of the current economic climate, including an anticipated 13 billion euro in additional interest payments on national debt, driven by decisions from the European Central Bank, and around 20 euro billion in super bonuses. She stressed that these developments collectively overshadow the budget itself.
The budget proposal aligns with their previously stated goals, notably defending the purchasing power, providing more income for those with medium to low earnings. Meloni specified that this includes a cut in the “cuneo” (a tax wedge on labor) of 6 points for those earning up to 35,000 euro and 7 points for those up to 25,000 euro. This adjustment is expected to result in an approximate increase of 100 euro per month for around 14 million citizens.
The budget also addresses the public sector, allocating over 7 billion euro for contract renewals, with a significant portion, over 2 billion euro, dedicated to the healthcare sector. The overall health budget is increased by 3 billion euro.
The government has made changes to the pension system. It removed the restriction that mandated pensioners in the contributory system retire only when their pension exceeded 1.5 times the social pension. Additionally, pensions are set for a 100% adjustment up to four times the minimum amount, with a 90% adjustment between four and five times the minimum. Further details regarding pension revaluation are in place for minimum pensions for individuals over 75 years old.
The pension systems of Ape Sociale and Opzione Donna are being replaced by a single fund for flexible retirement. In a move to support families, mothers with two or more children will be exempt from paying worker contributions, with the government covering the worker’s share. This policy seeks to incentivize family planning and work simultaneously.
From the second child onwards, access to free childcare in nurseries (asilo nido) is promised.
For self-employed individuals, the flat tax rate and an installment-based approach for the advance income tax in five installments from January to June have been extended for three years.
The government’s top priority in this budget is to renew contracts within the security sector, with over 5 billion euro allocated for this purpose. Furthermore, approximately 2.3 billion euro is designated for healthcare improvements.
In a notable change, the annual Rai television license fee, previously 90 euro, will be reduced to 70 euro, saving citizens 20 euro each year.
Vice Premier Matteo Salvini, during the budget approval conference, emphasized the government’s focus on the rapid development of the Strait of Messina Bridge, long-awaited infrastructure connecting Sicily to mainland Italy and Europe.
The budget also addresses various fiscal measures and income tax adjustments, reflecting the government’s concerted effort to stimulate the Italian economy.
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