Premier Giorgia Meloni expressed pride and satisfaction with the 2025 budget bill on Wednesday, calling it “serious and based on common sense.”
The government submitted its draft budgetary plan (DBP) to the European Commission on Wednesday, after approving the 2025 budget bill with €30 billion worth of new measures late on Tuesday.
Speaking during a European Union summit with Gulf States, she thanked her deputy premiers, Foreign Minister Antonio Tajani and Transport Minister Matteo Salvini, as well as Economy Minister Giancarlo Giorgetti.
Meloni highlighted the government’s consistent strategy, saying: “We focus on employment, income, salaries, and the health of citizens, without increasing taxes and keeping finances in order.”
The premier also highlighted increased healthcare funding, stating: “There were never as many resources for healthcare.” She confirmed healthcare funding will reach €136.5 billion in 2025 and €140 billion in 2026.
However, health research group GIMBE said Wednesday that the €900million increase the government has earmarked for the health service in the 2025 budget is “wholly insufficient”.
“The increase of only 900 million euros for 2025 is completely insufficient to address the urgent needs of a red-code NHS, as well as to support the reforms that have been launched, in particular the one on waiting lists”, GIMBE President Nino Cartabellotta told ANSA.
Banks to contribute to 2025 budget
Addressing measures aimed at banks and insurance companies, Meloni clarified: “We wanted resources to redistribute to low-income families, but we didn’t want to signal that banks are adversaries. For this reason, there was cooperation.”
Banks, which have seen high profits due to rising interest rates, and insurance companies are set to contribute €3.5 billion to the budget, supporting the national health system.
The package includes a €1,000 bonus for parents of newborns and maintains cuts in the labour-tax wedge for lower earners, introduced in the 2023 budget law. The DBP also preserves the Quota 103 pension scheme, allowing people to claim a State pension early if their age and years of social-security contributions add up to 103. Additionally, incentives will be provided for those who have reached retirement age but choose to stay in work.
Around €2.3-2.4 billion of the budget’s financial coverage comes from a review of public spending, with ministries required to cut their budgets by about 5%.
Will it pass EU scrutiny?
To fund the new measures, Italy will increase next year’s deficit to 3.3% of GDP, up from an estimated 2.9%.
Rome faces pressure to keep its finances in check, as it remains under special monitoring by Brussels for exceeding the EU’s 3% deficit limit and failing to reduce its enormous debt, now approaching €3 trillion.
Italy’s public debt edged closer to the €3 trillion mark in August, increasing by €11.9 billion compared to July, reaching €2.9625 trillion, the Bank of Italy reported on Tuesday.
The debt rose despite higher tax revenues. In August, tax revenues totalled €62.4 billion, an increase of €7.4 billion, or 13.4%, compared to the same month in 2023.
For the first eight months of this year, total tax revenues reached €371.7 billion, up by €19.2 billion, or 5.5%, compared to the same period in 2023.
