Italy’s Lower House approved the 2025 budget bill late on Friday with 211 votes in favour and 117 against. The package, totalling €30 billion in new measures, now heads to the Senate for final approval, expected on 28 December.
The budget has been at the centre of recent strikes across Italy, with many unions citing its provisions as a reason for widespread discontent.
Key measures in the bill include:
- A €1,000 bonus for parents of newborns, aimed at addressing Italy’s declining birth rate. This bonus will be means-tested, excluding wealthier families.
- A €3.5 billion contribution from banks and insurance companies, leveraging their high profits following European Central Bank interest rate hikes, to support the national health system.
- Cuts in the labour-tax wedge for lower earners, continuing from the 2023 budget.
- Retention of the Quota 103 pension scheme, allowing early retirement under specific conditions before the standard retirement age of 67.
To fund the 2025 budget, approximately €2.3-2.4 billion will be sourced through a review of public spending, requiring ministries to implement budget cuts.
The healthcare sector will receive an additional €1.3 billion, ensuring resources for contract renewals between 2028 and 2030 and increasing allowances for doctors, nurses, and emergency room staff.
While the government touts the budget as balanced and forward-looking, its critics argue the measures fail to adequately address Italy’s pressing economic challenges, fuelling the wave of strikes and protests seen in recent weeks.
