Italy’s right-wing government on Monday reversed anti-poverty subsidies introduced four years ago, called Citizen’s Income, that helped about four million people last year, in a move critics denounced as a “provocation” this International Labor Day.
Prime Minister Giorgia Meloni, who has led the country’s most right-wing coalition government since World War II, said income subsidies would be replaced by more limited “inclusion control” for eligible families.
The cabinet justifies the measure with the high costs that the poverty reduction subsidies entailed last year, about 8 billion euros, and because they “discourage physically fit people, especially young people, to look for a job”.
The new inclusion checks, expected to start in January 2024, will cost around €5.4 billion annually and will only be available to households with minors, seniors over 60 or people with disabilities.
Since taking office last September, Meloni has cut corporate taxes while pledging to restore Italy’s economic credibility by reducing debts recently incurred during the Covid-19 pandemic.
“We are reforming citizens’ incomes to differentiate between those who can work and those who cannot,” Meloni said in a statement.
In a labor reform imposed by decree on May 1, the Italian government has also made it easier for companies to hire workers on short-term contracts – which unions denounce as a way to keep workers in precarious economic situations – while she promises tax incentives for companies that hire people who benefit from the new Inclusion Vouchers.
The aim is to boost hiring and encourage more young people to find work in the eurozone’s third-largest economy, where the unemployment rate for 15-24 year-olds is almost three times higher than last year at 22.4% in February. average. national. (eight percent).
One of the measures taken by the Italian government is the reduction, until the end of the year, of the tax burden for employees with an income of up to 35 thousand euros.
“I am proud that the government has decided to mark May 1st with deeds and not words and I believe we owe new support to an economy that, despite a moment of difficulty, gives us great satisfaction,” Meloni rejoiced in a video message to announce the measure.
Provocation, say critics
The Citizens’ Anti-Poverty Grant Program was introduced in 2019 by the Five Star Movement (M5S) and its supporters say it has provided invaluable assistance to millions of low-income families, particularly in the impoverished southern regions.
Italy’s social security agency INPS says the grant benefited four million people last year, with an average monthly support of €550.
The new Inclusion Checks will have a maximum of 500 euros per month, but there will be new support for households with the elderly or disabled, or who do not own a home.
“A serious government will not assemble on May 1 to condemn young people to a life of insecurity and destroy their dream of a home or children,” criticized the former Prime Minister of the Five Star Movement, Giuseppe Conte.
Roberto Fico, a popular former speaker of the lower house of parliament, called Meloni’s move a “provocation”.
In a statement, Meloni defended the measure as “a strong signal to honor employees on this festive day and give them the answers they expect.”
Thousands of May 1 protesters demonstrated across the country, including Rome, where some threw eggs at government buildings, while unions held their main joint demonstration in the southern city of Potenza.
Source: DN
