This week, the government’s top priorities focus mostly on economic measures such as bonuses for low-income workers, tax breaks for companies that hire, especially in the Southern regions, and tax exemptions for production bonuses. A new set of measures for labor is set to be presented in the Council of Ministers on Tuesday, April 30th, just before the Labor Day holiday. These interventions will be first discussed with the unions, who were unexpectedly summoned to Palazzo Chigi to hear the news from Prime Minister Giorgia Meloni. Last year, a similar decree was issued on Labor Day, replacing the citizenship income with an inclusion income, which sparked backlash from the unions.
While the details of the new measures are still being finalized, some key points have already emerged. Deputy Minister of Economy, Maurizio Leo, announced that the Council of Ministers will present a legislative decree on income tax, implementing fiscal delegation, with a focus on bonuses for the thirteenth month salary. The proposed bonus is described as an “allowance” of up to 100 euros for employed workers with incomes up to 28,000 euros and at least one dependent spouse and child. Due to budget constraints, the measure will be limited to 2024, pending the structural introduction of a new tax regime on thirteenth-month salaries for employees. The government is cautious about ensuring proper financial coverage for these measures to benefit families.
Another anticipated measure is the Coesione decree, which revises the rules for the allocation of over 40 billion euros in EU funds to Italy every seven years. Italy struggles to fully utilize these funds due to bureaucratic hurdles and poor coordination between administrations, ranking second to last in Europe for fund usage. The government aims to apply the same management rules used for the National Recovery and Resilience Plan (PNRR) funds to structural funds, including sanctions for entities that fail to meet project deadlines and centralized coordination from Palazzo Chigi. This reform seeks to address the limitations and deficits in Italy’s cohesion policies, with a focus on improving governance to effectively utilize these resources. The Coesione decree also includes provisions related to employment, as highlighted by Minister of Labor, Marina Calderone, focusing on supporting companies that hire, active policies, and training.
The government’s efforts are aimed at enhancing the utilization of EU funds allocated to Italy through improved management and coordination mechanisms. By aligning the rules for structural funds with those of the PNRR, the government seeks to overcome bureaucratic obstacles and ensure the timely execution of projects. This reform is intended to create a more efficient and effective governance model for maximizing the impact of these resources. The measures outlined in the Coesione decree also encompass initiatives to support employment and skills development, signaling a comprehensive approach to addressing the country’s cohesion challenges while fostering economic growth and job creation.
In conclusion, the government’s focus on economic measures this week reflects its commitment to supporting workers, businesses, and the overall economy through targeted interventions. By introducing bonuses for low-income workers, tax incentives for companies that hire, and reforms to improve the utilization of EU funds for cohesion policies, the government aims to stimulate economic growth, create job opportunities, and enhance the overall welfare of Italian citizens. These measures underscore the government’s dedication to addressing key economic challenges and fostering sustainable development across the country, signaling a proactive approach to policy-making and governance in line with its priorities.
