ROME (AP) — Italy’s parliament on Saturday approved the government’s 2025 budget worth about 30 billion euros ($31 billion) in tax cuts and social security contributions for low-income citizens.
The measures, under pressure from the far-right cabinet led by Prime Minister Giorgia Meloni, were ultimately approved in the Senate with 108 votes in favor and 63 against.
The country’s center-left opposition had sharply criticized the economic package, saying it fell short of the prime minister’s promises to cut taxes for most Italians and boost employment.
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Meloni has staunchly defended the budget, emphasizing its “broad balance” and its goal of supporting low- and middle-income people and families with children, while adding resources for the country’s struggling health care system.
“We have used the limited resources available to strengthen the main measures adopted in recent years, make them structural and extend them to a wider audience,” the Prime Minister said after the final approval of the budget.
The package includes a 1,000 euro bonus for parents of newborns, excluding wealthier families, as part of efforts to reverse Italy’s falling birth rate.
Banks, which have made high profits in recent years thanks to falling interest rates, will be asked to contribute 3.5 billion euros to the budget, which will go to the national healthcare system.
Italy is under pressure from the European Union to reduce its deficit after huge spikes in 2022 and 2023, and has pledged to bring it below the EU ceiling of 3% of GDP by 2026.
