italian government unveils 2025 budget plan with tax cuts and healthcare funding

The Italian government has scheduled a Council of Ministers meeting on October 15 to discuss the financial maneuver for 2025. This move is in response to the European Commission's requirement for member states to submit their budget laws by October 20.

Government's Strategy

The Council will approve the Programmatic Budget Document and the Fiscal Decree, which outline the budget maneuver and the government's strategy to reduce public debt and deficit over the next seven years. The government aims to reduce public expenditure, particularly social security costs, and make adjustments to the Irpef tax rates.

Financing the Budget

To finance the budget maneuver, the government needs to raise approximately €25 billion, with €10 billion to be sourced through alternative means. Negotiations are ongoing to find a way for banks to contribute without imposing direct taxes. The government plans to implement across-the-board cuts to ministry budgets to save around €3 billion.

Priority Areas

The 2025 budget will prioritize tax reforms, support for low and middle-income families, investment in healthcare, and resources for public administration. The decisions made in the Council of Ministers meeting will shape Italy's economic trajectory and demonstrate its commitment to EU fiscal guidelines and domestic priorities.

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