On December 16, the Italian budget bill is set to enter the House chamber after being introduced in the Council of Ministers over a month ago. The proposed budget includes several significant proposals aimed at reshaping the economic landscape.

Proposed Budget Measures

The proposed budget includes the following measures:

• Allocating an additional three billion euros for the construction of the bridge over the Strait of Messina
• Implementing a six-month period of silent consent for severance pay to be directed towards supplementary pensions
• Reducing the second Irpef tax rate to encompass income up to 60,000 euros

The Ministry of Economy and Finance (Mef) will scrutinize the proposed budget and intervene against any amendments lacking proper financial backing. The parliamentary process is expected to be contentious, with around 250 amendments ready for consideration. Tensions within the ruling majority could complicate negotiations, particularly regarding the proposed additional Irpef cut for the middle class. Forza Italia is advocating for this tax reduction and suggests utilizing funds from a two-year concordat to facilitate it.

Political Landscape

The political landscape surrounding the budget maneuver is filled with potential divisions. Forza Italia is pushing for an immediate Irpef cut and has garnered support from its senators, who argue that there are available funds. Fratelli d'Italia (FdI) also emphasizes the importance of further Irpef cuts, but the executive has indicated that such measures may be postponed. The League is taking a cautious stance and waiting for clarity on available resources before committing to tax cuts.

The League has successfully secured three billion euros for the Strait Bridge project by reallocating resources from the Development and Cohesion Fund. This move has sparked criticism from opposition parties, who accuse the government of prioritizing infrastructure projects over the South. The opposition parties, including the Democratic Party (Pd) and the Five Star Movement (M5s), condemn what they call the "Salvini blitz" and argue that it diverts essential resources away from southern regions.

Other Proposed Measures

Among the various proposals under consideration:

• The FdI's initiative for a new six-month period of silent consent for severance pay transfers to supplementary pensions has strong backing.
• The government aims to introduce a 'family dote,' which is a financial contribution of 500 euros per year for extracurricular activities for children under 14. This initiative reflects a broader commitment to supporting families and enhancing educational opportunities for youth.
• The exclusion of the Police Force from the turnover freeze in the public administration has unanimous support from the ruling majority and has already received approval from Economy Minister Giancarlo Giorgetti.
• The government is also facing criticism for the proposed rule mandating Mef auditors in companies receiving public contributions. Calls for reform are widespread, with suggestions ranging from abolishing the auditor requirement to increasing the contribution ceiling. The Treasury is actively working on a solution, and a government reformulation is expected in the coming days.

As the budget maneuver progresses through the parliamentary process, the interplay of political interests, economic priorities, and public sentiment will shape the final outcome. The decisions made in the coming weeks will have lasting implications for Italy's economic trajectory and the welfare of its citizens.