Meloni prevails over Berlusconi and Salvini: financial policy remains on Draghi course

Created: 11/22/2022, 6:17 p.m

By: Kathrin Reikowski

The new prime minister, Giorgia Meloni, is party leader of the far-right Fratelli d'Italia.

© Mauro Scrobogna/LaPresse via ZUMA Press/dpa

Italy's election campaign had made the EU fear bad things in terms of financial policy.

Campaign promises by Salvini and Berlusconi would have triggered a new debt crisis.

Rome – An increase in the minimum pension to 1000 euros, also for all mothers in Italy, a standard tax of 15 percent for everyone and tax amnesia – the election promises made by Giorgia Melonis junior government partners Silvio Berlusconi and Matteo Salvini would have required new billions in debt in Italy, like the Austrian

analyzed.

A new euro crisis would then have been possible.

According to this, Meloni had already promised the EU during the election campaign that he wanted to maintain the budget course of her predecessor Mario Draghi as far as possible, probably because Italy is also dependent on EU money from the reconstruction fund.

According to the first impressions from the budget law passed on Tuesday, it is clear that Meloni kept her word and was able to assert herself against Berlusconi and Salvini.

In it, Italy focuses on fighting rising energy prices and on tax breaks.

Prime Minister Giorgia Meloni's cabinet wants to support families and companies suffering from high gas and electricity costs with measures totaling 35 billion euros.

The 35 billion euros are mainly generated by new debt.

Of this, 21 billion euros flow into measures against the increased energy prices.

Italy's budget for 2023: Citizens' income from the Five Star Movement will be largely abolished

In addition, ancillary wage costs for employees are to be reduced.

For freelancers, the upper income limit was raised to 85,000 euros, in which a fixed tax rate of 15 percent applies.

This is a concession to Salvini, who does not lose face with it, as the

writes.

Meloni spoke on Tuesday of "courageous and consistent measures".

In addition, the right-wing government decided to largely abolish the citizens' income (Reddito di Cittadinanza) introduced in 2019 by the left-wing populist Five Star Movement.

That was one of the biggest issues for Meloni and her coalition partners in the election campaign.

In 2023, Italians who, according to Meloni, are able to work, should only be paid a maximum of eight months;

from 2024 no longer at all.

If someone rejects what the government says is a “reasonable” job offer, citizenship ends.

Meloni Announces Further Citizen Income Review - Five Star Boss Announces Demos

For other recipients of support, such as older people, Meloni announced a more intensive review of the measure.

Five-star boss Giuseppe Conte had announced that he would fight for citizen money and take to the streets with his supporters.

The budget must be approved by Parliament by the end of the year.

Melonis Rechtsallianz has a majority in both chambers.

However, as the cabinet decided at its meeting on Tuesday night, the measures to lower fuel prices will be scaled back from December.

Instead of the previous 25 cents per liter - which ultimately became 30 cents - petrol and diesel will in future be subsidized with 15 cents per liter.

As a result, prices at Italian petrol pumps are likely to rise again.