A surprise move by the government, which will approve not only the budget planning document and the tax decree to be sent to the EU on October 15 in the Council of Ministers, but Financial trick. It aims to meet deadlines set by the European Commission, which wants the budget law to be submitted to member states’ parliaments by October 20.
Therefore, the first formal text of the fiscal strategy for 2025 will be adopted, in which several measures are already considered fundamental. The government will try to raise fresh funds from both. “Sacrifices” of banks announced by Minister Giorgetti in recent days, and through linear cuts in ministries. Ratification of tax wage cuts and new funding for health care and public administration is expected, without confirming tax increases, such as equalizing excise duties.
A surprise move by the government, a quick maneuver in the Council of Ministers
Georgia Maloney’s government has put it on the agenda. Council of Ministers today 15 OctoberTo be held at 8.00 p.m., Fiscal Plan for 2025. An unexpected move, given that the meeting was primarily supposed to approve the budget plan and tax decree to be sent to the European Commission on October 15. It will be absolutely necessary to respect an EU deadline, which requires member states’ parliaments to start debating their respective budget laws on October 20, which has forced the government to step up.
Budget planAt 8.00 pm to be approved in the Council of Ministers, including all plans of the government to recover from excessive public debt and deficit within a maximum of 7 years. The document therefore limits how much the Italian state will be able to spend in the coming years, including in 2025. The budget law is directly dependent on what is reported in the plan, which provides, among other things, for clear cuts. It starts with curbing the most burdensome item in public spending: Social Security.
Tax Decree Instead it is part of the delegation the government has received from Parliament to reorganize the Italian tax system, most notably by interfering with Irpef rates. Thanks to the resources obtained in the budget, the executive should be able to cut the tax wage structure, so it should be permanent and not annual. The Italian income tax burden is expected to fall from 42.3 percent in 2024 to 42.1 percent next year.
Deductions and contributions from banks, to be approved by the Council of Ministers.
Apart from the budget plan and the tax decree, the Council of Ministers must also approve it. Full financial management plan for 2025. The most complex problems for the government to solve in recent times are those related to raising the necessary funds without increasing the deficit too much, about 25 billion euros. The main support came from unexpected additional tax revenue, rising due to inflation. For the remaining 10 billion, however, the executive had to find alternative solutions.
First there is a contribution from the banks, so called “Sacrifices” Economy Minister Giancarlo Giorgetti. However, this seems to be one of the points still to be resolved within the majority. Forza Italia has vetoed any tax on excess profits, the windfall that credit institutions may have received after rising interest rates on loans and mortgages. The Ministry of Economy itself is in talks to find a solution that would allow it to collect a large amount without offending the majority section.
At that time the most desirable prospect would be from the banks. Impairment on deferred tax assetsDTA, budget items that result in excess or prepayment of tax and which automatically become tax credits in Italy. The second option will be concerned. stock option, Stock market contracts that give their holders the ability, but not the obligation, to buy or sell stock for a specified period of time. Regardless of the methods, however, negotiations will currently be based on the extent of this contribution.
Finally, the government would like to avoid new taxes, especially the equivalent of an excise duty on diesel that would raise the price to an average close to the price of petrol. For this reason, so-called linear cuts will be made in ministries. Giorgetti will therefore prepare a cost-cutting plan for all ministries, since no minister has submitted a cost-cutting plan, despite an official request from the Ministry of Economy. The executive hopes the operation will save money. 3 billion euros.
Single allowance, health care, public administration and reducing the tax wedge
There are four key interventions in the 2025 budget law. The first is Cutting the tax wedgeWhich will be structured. In this case, there will be no change for the citizens. The government will allocate the necessary funds to maintain the Irpef rate, and therefore tax for employees, at current levels for 2025 and into the future. This is the most expensive intervention, forcing the executive to find additional resources.
The budget also confirms interventions in favor of low-middle-income families and families with children. The instrument used will be the only allowance, which may change with ISEE recalculation. Also provided funding to hire new doctors and nurses to help. National Health System As a result of this difficult decision, Minister Schilaki must launch a three-year employment plan in all Italian hospitals, which according to certain sources will cost around 3.2 billion euros.
New resources also in public administration, mainly for the renewal of contracts for the three-year period 2025-2027. In this context it is hoped that refinancing Bonus Maroni And zero-spending measures to encourage workers not to retire help limit the number of employees needed to run the state machine. The construction bonus will remain reduced, the renovation bonus will remain at 50% only for those working on their first home. In all other cases the State contribution in the form of tax credit will be limited to 36% of the total expenditure.
