ROME — On Saturday, Italy’s parliament sanctioned the government’s budget for 2025, which totals 30 billion euros (approximately $31 billion). A significant portion of this budget is allocated towards tax reductions and social security benefits aimed at low-income individuals. These financial measures were advocated by the far-right government led by Premier Giorgia Meloni, and the final decision in the Upper House passed with a vote of 108 to 63.
The center-left opposition in Italy has vocally criticized this economic package, arguing that it falls short of the commitments made by the premier to significantly reduce taxes for a majority of Italians and enhance employment opportunities. Meloni has resolutely defended the budget, highlighting its “broad balance” and its goal of providing assistance to low and medium-income families, especially those with children, while also allocating additional funds to the nation’s struggling healthcare system.
Following the budget’s ratification, the premier stated, “We utilized the limited resources available to reinforce the key initiatives established in previous years, transforming them into permanent measures and extending their reach to benefit a larger demographic.”
Within this budgetary plan, there is a provision for a 1,000-euro bonus for parents of newborns, although this incentive excludes wealthier families as part of an initiative to combat Italy’s declining birth rate.
In a significant move, banks, which have reaped substantial profits over the recent years due to decreasing interest rates, will be required to contribute 3.5 billion euros towards the budget. These funds will be directed to support the national health system.
Italy faces pressure from the European Union to reduce its deficit, which saw significant increases in 2022 and 2023, and has committed to lowering this figure to below the EU’s threshold of 3% of GDP by 2026.
