Italian parliament supports Meloni’s budget of more than 30 billion euros

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(Bloomberg) – Italian Prime Minister Giorgia Meloni has gotten the final green light from parliament for her economic plans for next year.

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Thursday’s Senate vote in favor of the budget worth more than 30 billion euros ($31.9 billion) will be a relief for Italy’s new leader as it comes just before an end-of-term closing. year that would have triggered a government shutdown.

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The 2023 plan provides for the financing of key measures promised by the government, including tax cuts for the self-employed and a tax break. Two-thirds of the money will be allocated to measures already in place to mitigate the impact of the energy crisis.

The finance law also shows Meloni’s desire to go back on certain promises in order to comply with European Union rules. Rome has dropped plans to allow sellers to refuse credit card transactions below €60 following criticism from Brussels.

Cautious approach

Meloni’s plan also takes a cautious approach to borrowing. Italy is targeting a deficit of 5.6% of gross domestic product this year and plans to reduce it to 4.5% in 2023 and 3% in 2025.

These figures are less ambitious than the previous targets but still show a determination to respect the EU’s 3% limit, currently suspended following the Covid pandemic.

Meloni told reporters in Rome that Italy would continue to control its public finances.

The budget will be partly financed by an increase in the exceptional tax on energy companies and a reduction in the so-called income of citizens.