Budget Law has been approved, the process begins

Every year, a week like this arrives: the week in which the Council of Ministers gives the green light to the Budget Law. The 2024 budget will soon enter the parliamentary process for approval by December 31. It is a financial package worth 30 billion euros gross, 9 of which in deficit, which will nonetheless respect the criterion of 1.5% net primary expenditure (i.e., excluding interest) in relation to GDP.

Minister Giancarlo Giorgetti confirmed the strictness of the new budget rules, despite potential increased revenues, but reiterated that the fiscal burden will also fall on banks and insurance companies, from which a total revenue of 3.5 billion euros is expected. These sums will probably be obtained not only from the profits these institutions have enjoyed but also through a tightening of deductions and possible tax advances. This, as the minister warned, will allow avoiding cuts in healthcare. The consolidation of the personal income tax (Irpef) into three brackets, as seen last year, has been confirmed. The flat tax is still in the works and could see an acceleration if the financial agreement is very favorable. “I confirm that there is a desire to proceed with the placement of an additional stake in MPS (Monte dei Paschi di Siena) by the end of the year,” he explained.

Parental leave measures have been confirmed and strengthened. A “Newborn Card” has also been introduced, granting 1,000 euros to parents with an ISEE (equivalent economic situation indicator) threshold of 40,000 euros to help cover the many initial expenses for each newborn. These are just a few of the measures that summarize the direction of the law, which is certainly aimed at meeting the needs of the most vulnerable classes.

On the international front, it was the week of the European Council. A summit focused on migration and foreign policy. On the first point, EU leaders are asking the European Commission to urgently present a new legislative proposal on returns. The Council is calling for determined action at all levels to facilitate, increase, and accelerate returns from the European Union, using all relevant policies, tools, and means – including diplomacy, development, trade, and visas. Innovative ways to combat irregular migration should also be considered, in line with EU and international law. Ukrainian President Zelensky also spoke at the summit, declaring: “For us, NATO is a security umbrella, it is the only hope. If our partners do not keep their promises, it will be very difficult for us against Russia,” he said at a press conference following his meeting with leaders in Brussels. He added: “The majority of EU leaders have expressed full support for the peace plan, and I am pleased that we have a clear path ahead. I am very grateful to everyone for supporting our journey towards the EU: they have supported us with financial and military aid since the beginning of the war.” When asked a question, he reiterated: “I will not add anything further regarding the conversation I had with Trump beyond what has already been said, that conversation was between me and him. We talked about NATO, I presented my arguments for Ukraine’s membership, and he said he agreed. It means what it means.” On the topic, however, the reaction of German Chancellor Olaf Scholz was emblematic: he sidestepped the issue without affirming or denying, responding cautiously: “We are working on it.”