Italy‘s New Growth Budget: Giorgia Meloni & Giorgetti Unveil €30 Billion Manifesto for ‘Fairer, Stronger’ Nation
Italy’s third manovra – or growth budget – for 2025 has been signed into law, heralding a new era for the government led by Premier Giorgia Meloni. The minister in charge, Giancarlo Giorgetti, stated, "We’ve cut inefficient spending and waste to gather resources and aid struggling families, particularly medium and low-income workers."
The budget was passed by the Senate with a resounding 112 votes in favor, 67 against, and one abstention, following two months of intense negotiations and some parliamentary hiccups. The €30 billion package includes key reforms like:
- Consolidating the three main Irpef tax brackets
- Broadening the cut to the tax burden on earnings up to €40,000
- Adjusting tax credits and deductions
- Introducing a reward system (Ires) for companies reinvesting profits
- Expanding the scope of the social inclusion allowance
- A €6 billion family support package, including a baby bonus and maternity leave aid for freelancers
However, the government didn’t include further cuts to Irpef, which has been pushed by all centrist parties. Meloni’s team assured that the median Irpef rate would be reduced by 1-2 percentage points within the first half of 2025, using funds (€1.6 billion) from a two-year pre-bankruptcy agreement. Additionally, the government plans to trim €12 billion in spending across ministries and local entities over the next three years.
The new budget is set to bolster Italy’s competitiveness and strengthen its economy, making it a fairer nation for all. With these reforms, the Italian government aims to fortify its economic foundation and ensure that the benefits reach all corners of society.
