Italy’s parliament recently passed the government’s 2025 budget, a €30 billion ($31 billion) package prioritizing tax reductions and social security enhancements for low-income citizens. Over half of the budget is allocated to these measures. Championed by Premier Giorgia Meloni’s far-right cabinet, the budget received final approval in the Upper House with a vote of 108 to 63.
The economic package has drawn sharp criticism from the center-left opposition, who argue it falls short of Meloni’s promises to implement widespread tax cuts and stimulate job growth. They contend the budget does not adequately address the needs of the broader Italian population.
Meloni has vigorously defended the budget, emphasizing its balanced approach and its focus on supporting low and middle-income earners, families with children, and bolstering the national health system. She highlighted the strategic allocation of resources to reinforce and expand existing measures, ensuring broader accessibility and long-term impact.
Following the budget’s approval, Meloni stated, “We used the limited resources available to strengthen the main measures approved during the past years, making them structural and widening them to include a larger audience.” This statement underscores the government’s intent to create lasting change through the budget.
Key provisions within the budget include a €1,000 bonus for parents of newborns, specifically targeting lower-income families to encourage population growth and address Italy’s declining birth rate. This measure aims to provide direct financial assistance to new parents.
Furthermore, the budget calls for a €3.5 billion contribution from banks, capitalizing on their recent profitability driven by low interest rates. This contribution will be directed towards the national health system, a sector facing significant challenges.
The budget comes as Italy faces pressure from the European Union to reduce its deficit, which surged in 2022 and 2023. The Italian government has committed to bringing the deficit below the EU’s 3% of GDP ceiling by 2026. This commitment underscores the government’s dedication to fiscal responsibility within the EU framework.
In conclusion, the 2025 Italian budget prioritizes tax relief and social security improvements for low-income individuals and families. While facing opposition critique and EU fiscal pressures, the Meloni government maintains its commitment to this targeted approach, aiming to provide financial support to those most in need and strengthen crucial sectors like healthcare. The long-term effectiveness and impact of this budget will remain to be seen as its provisions are implemented and its outcomes monitored.
