Italy’s right-wing government on Monday approved a labor market reform that cuts taxes for workers while further scaling back an unemployment benefit brought in by a previous administration.
(Bloomberg) — Italy’s right-wing government on Monday approved a labor market reform that cuts taxes for workers while further scaling back an unemployment benefit brought in by a previous administration.
The package slightly lowers levies on workers’ income. But it also shrinks the number of people benefiting from the “Citizens’ Income,” a subsidy for the jobless introduced by ex-Prime Minister Giuseppe Conte that’s proved costly to finance.
The plan promises to safeguard vulnerable workers and cut down on evasion, according to a statement from the League party, a coalition member.
The new package was approved on the May 1 labor day holiday in a bid to underscore Premier Giorgia Meloni’s intention to show that her coalition is delivering on promised tax cuts.
While Meloni, who took power at the end of last year, has sought to reassure investors with prudent financial management and by avoiding boosting borrowing, Italy remains closely watched due to its heavy debt. To finance the package, the government will take advantage of fiscal leeway from better-than-expected growth.
Meloni suffered an embarrassing defeat in parliament last week when too few coalition lawmakers initially turned up to pass a bill to authorize use of the funds, though the measure was later approved.
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