Green light for the budget: IRPEF at 33 per cent on earnings up to 55,000 euros, flat tax on earnings up to 100,000 euros

“A social voucher worth 300 euros is being introduced for Italians aged over 75 with a pension of up to 28,000 euros a year: we are talking about 5.5 million people, with the measure costing a total of 1.6 billion euros,” explained Meloni.

It adds ‘an extra month for everyone’ of parental leave ‘but we’re going even further: for the second child, the months paid at 80 per cent increase by 2, meaning there will be up to 5 in total, whilst from the third child onwards there are as many as 6’. Therefore, ‘for those with three or more children, the number of months of parental leave paid at 80 per cent under this Budget Law rises to six’.

Flat-rate tax at an agreed rate of 5 per cent, and 1 per cent for those under 35

‘The problem of rents is affecting the whole of Europe, and Italia is no exception; that is why we have launched a housing plan’ “However, in the budget, we have included a measure whereby ‘the flat-rate tax on rent-controlled properties is reduced to 5 per cent, but for those renting to young people aged up to 35 under a rent-controlled agreement, it is 1 per cent’,” explained the Prime Minister.

Among the measures initially on the meeting’s agenda was also the decree-law on utility bills (urgent provisions to reduce the cost of electricity and gas); however, this was postponed due to the need, it was explained, for certain technical amendments. Under consideration are a legislative decree on the reform of the craft sector and another on the reorganisation of the regulations governing outdoor seating areas.

The budget includes a fund for newborns, structured as a pension fund, under which, from 2027, the State will pay 100 euros a year for every newborn, until they reach the age of eighteen. The measure stems from a proposal by the Minister for the Economy, Giancarlo Giorgetti, who is very pleased that all coalition partners have backed the measure.

As for the funding, Meloni explained, “around 5 billion or more comes from the financial sector”, from banks and insurance companies, “with an excess of 90,000 euros” for cooperative banks and small institutions, and from an increase in the Tobin tax.

“There was no scope for reaching a prior agreement” with the financial sector, commented Meloni, “whom I would like to thank: I believe that banks and insurance companies, too, understand the situation and agree” with the need to “lend a hand”. The Prime Minister emphasised that “this is not a measure directed against anyone, but at a difficult time we have asked those who are less affected to lend a hand, and the State is setting a good example with the cuts to ministries, which amount to around 1 billion”.

The funding includes “a further contribution to energy companies, amounting to approximately 700 million, on top of the contribution we had already requested in recent months – for example, to finance the energy bills decree – whilst ‘a further 700 million’ will come from the gaming sector.”