Italian Premier Giorgia Meloni’s cabinet approved the country’s new budget law worth €24 billion ($25.3 billion), simplifying taxes and supporting low-income earners.
(Bloomberg) — Italian Premier Giorgia Meloni’s cabinet approved the country’s new budget law worth €24 billion ($25.3 billion), simplifying taxes and supporting low-income earners.
Speaking in Rome alongside Finance Minister Giancarlo Giorgetti, Meloni unveiled spending plans including tax cuts on wages and a reduction of tax brackets to three from four.
Plans also feature a renewal of contracts for state employees, particularly health care workers, and measures for aimed at encouraging parenthood to combat Italy’s historically low birth rates, she said.
She highlighted that due to European Central Bank tightening, Italy now faces higher costs.
“In 2024, we will have about €13 billion in higher interests on debt to pay because of the decisions taken by the ECB,” she said.
Meloni’s government needs more money after its looser deficit forecasts revealed at the end of last month showed the shortfall won’t drop below the European Union’s 3% of economic output limit until 2026 — a year later than previously planned.
Giorgetti, who is set to meet fellow euro-area finance ministers in Luxembourg later on Monday, said he is confident that Italy’s “serious and prudent” budget will be “well received in Brussels.”
To find the funds the government has earmarked €20 billion euros to come from privatization over the next three years. Giorgetti confirmed that Italy will receive funds from the divestment of ITA in 2024, but provided no specifics on other potential asset sales.
–With assistance from John Follain, Alberto Brambilla and Tommaso Ebhardt.
(Updates with Giorgetti starting in seventh paragraph)
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