Connect with us

Hi, what are you looking for?

European Union

New Italian government’s budget to boost spending to fight energy crisis



Italy’s right-wing government has announced new spending of EUR30 billion in budget next year. This budget is principally focused on reducing high energy costs and delaying some extravagant election promises.

The ongoing energy crisis caused by Russia’s invasion of Ukraine means that Prime Minister Giorgia Maleni and her comrades won’t be able to fulfill their extravagant electoral campaign promises, including swinging tax cuts.

Advertisement

“We won’t be able to do everything at the same time. Adolfo Urso, Industry Minister, stated that previous attempts to do so have resulted in disaster on Sunday.

Meloni has already declared approximately two-thirds more spending power would be used to help households and businesses withstand record-high gas and electricity bills. This figure is in addition the EUR75 billion spent on 2022 to fight rising energy prices.

The 2023 deficit target was raised by this cabinet from 3.4% as predicted by Mario Draghi, to 4.5%. Ministers insist they will be fiscally prudent, and avoid budget errors that discredit Liz Truss (Britain’s former prime minister).

The promises of the far-right League party for a generous reform to the pension program were delayed. The budget will reduce the tax burden of labor but substantial income tax cuts were ruled.

The cabinet is considering eliminating sales tax on basic food items like milk and bread to help families deal with the horrendous inflation of 12.6% in October under EU harmonized.


Advertisement


Additional borrowing will help pay for some of the spending promises. Windfall taxes on profits of energy companies affected by rising oil and gas prices will generate around 3 billion euros in new revenue.

Meloni is likely to begin rolling back a poverty relief program for citizens’ wages in order to help them save money.

Leftist parties argue the measure is necessary given the current economic crisis. Coalition parties claim that it allows the unemployed avoid the job market.

“(Payments will stop for those aged 18 to 59 who can work. It will not happen immediately. It will take place in 2023,” Giovanbattista Fazalari, undersecretary of government, said to Corrierenewspaper.

The cabinet approves the budget and the parliament has 31 days to make it law.

This article is shared:

EU Reporter publishes articles sourced from many outside sources that reflect a broad range of views. These articles do not necessarily reflect the views of EU Reporter.

You May Also Like

World

For many years we have seen how the Soft Power used by the Kremlin works exclusively through culture, exhibitions, musical groups presentations, etc. It...

Featured

Yesterday (8th June)  Gotham City media outlet reported that on 21 March Russian businessman Vladislav Klyushin was arrested in Switzerland at the request of...

World

The Azerbaijani diaspora, which numbers some 60 million people around the world has entered the virtual social media battle being waged between Armenia and...

World

Zechariah and Shama’a have been married for 91 years. As Jewish orphans in Yemen, they married young to avoid being wed outside of their...