The maneuvers of the Maneuver, here are the text and the words of Meloni and Giorgetti
What is in the budget maneuver approved by the council of ministers. All the details
The budget law is worth around 24 billion and, according to the government's intentions, wants to offer support to citizens with medium-low incomes, to working mothers with at least two children and to guarantee a small "social safety net" also to self-employed workers. “I am very proud of this result – said Prime Minister Giorgia Meloni in the press conference after the Council of Ministers – and of what this government has done. It seems to me to be the most serious signal to give to Italians."
The Prime Minister and the Minister of Economy Giancarlo Giorgetti presented at the Council of Ministers a maneuver that postpones the reform projects to better times, with the exception of the launch of the new Irpef, and looks above all at medium-low incomes .
Here are all the details on the maneuver, point by point.
THE FULL TEXT OF THE MANEUVER DL. THE DRAFT
MANEUVER: 10 BILLION TO DECONTRIBUTION, 3.5 TO THE REDUCTION OF THE STAIRCASE, 3 BILLION TO HEALTH
After all, it is not a prosperous moment and we need to be "serious, prudent and responsible", the Prime Minister said in a press conference after the council of ministers. “In macro-figures – said the Minister of Economy Giorgetti – there are 10 billion for the decontribution, 3.5 billion for the reduction of the staircase, 3 billion or something for healthcare, 5 billion for public employment contracts and other minor things entities, such as Ukraine and our soldiers' missions around the world that cost 1.2 billion every year. The fringe benefits and productivity bonuses are confirmed."
LOW-MEDIUM INCOMES: HEAVIER PAYCHECKS
The maneuver attributes around 10 billion to the renewal in 2024 of the cut in the tax-contribution wedge (7% for incomes up to 25 thousand euros, 6% for incomes up to 35 thousand euros) which began last July. Added to this measure is the reform of Irpef rates with the merging of the first two bands (0-15 thousand at 23% and 15-28 thousand at 23%) at 23% for all incomes up to 28 thousand euros per year. The measure is financed with 4.3 billion. The effect on the paychecks of approximately 14 million employees will not be insignificant: the simultaneous application of the reduction of the contribution wedge and the new Irpef rate will produce an increase of 1,298 euros per year (for incomes up to 27,500 euros gross per year ).
MANEUVER: CONTRIBUTIONS FOR WORKING MOTHERS WITH TWO OR THREE CHILDREN
“We expect that mothers with two children or more will not pay the worker's contributions – said Meloni at the end of the meeting of the Council of Ministers -. The worker's share for mothers with two or three children is paid by the State. The idea is that “a woman who gives birth to at least two children has already made an important contribution to society and therefore the State partly compensates by paying social security contributions. We want to dismantle the narrative according to which the birth rate is a disincentive to work. We want to encourage those who give birth to children and want to work."
INCENTIVES FOR THE HIRING OF WOMEN, DISABLED PEOPLE AND UNDER 30
But not only. The maneuver tries to encourage companies to hire mothers through a "super deduction" of 130%. “We are introducing for companies a super deduction on the cost of labor for those who hire on a permanent basis equal to 120% for all hires and up to 130% for those who hire mothers, under 30s, RdC recipients and people with disabilities – said the Premier -. The principle we apply is: the higher the incidence of employees you have in relation to turnover, the less taxes you owe to the State". This measure, which is worth no less than 1.3 billion euros, must be added to the tax exemption for those who hire in the South in the special economic zones, as provided for in the South decree.
MANEUVER: THE PLASTIC AND SUGAR TAX POSTPONED TO 1 JULY 2024
Furthermore, the maneuver postpones the entry into force of the plastic and sugar tax to 1 July 2024 and a tax credit is introduced for those who purchase capital goods intended for production structures located in the South. The maneuver also introduced a plan that reforms the management of public guarantees and which has the objective of directing the instrument towards social investments that guarantee high added value such as those in strategic infrastructures and for the technological, green and digital transition of businesses .
PUBLIC EMPLOYMENT: 2 BILLION TO HEALTH BUT PRIORITY IS THE SAFETY SECTOR
The maneuver also looks carefully at public employment contracts. “For the issue of contractual increases in the public sector, there are over 7 billion euros available for contractual increases – explained Meloni -. Over 2 billion concern the topic of healthcare, 5 billion for the remaining sectors. But I want to say clearly that we agree that this year's priority is the renewal of the security sector.
PENSIONS: ANTI-INFLATION REVALUATION UNDERWAY
Those who suffered from the inflationary flare-ups were lower incomes and less generous pensions. Thanks also to the reform of Irpef rates, pensioners will be able to receive benefits of up to 1,279 euros per year (pension income of around 28 thousand euros), against the effects of inflation.
“On the revaluation of pensions in relation to the inflationary figure, we revalue pensions at 100% up to four times the minimum, at 90% those from four to five times and then decrease as the amount increases. The super revaluation of minimum pensions for the over 75s is confirmed – explained the Prime Minister -. Still on pensions, we intervene in some situations of imbalance and we have begun to give a signal on pensions that no one has ever dealt with" he explained.
The Government has eliminated the restriction which states that those who are on contributory income can retire at the required age "only if the amount of their pension is equal to and not less than 1.5 times the social pension".
MANEUVER: INTERVENTIONS ON APE AND WOMEN'S OPTION
The maneuver also affects the Social Ape and Opzione donna, brought together in a single outgoing flexibility fund. As regards the Ape, the measure raises the contribution requirement for men to 36 years and introduced different requirements for women. Quota 104 remains with some specifications that take into account the need to valorise those who want to stay in work (such as the Maroni Bonus).
FLAT TAX: KEYWORD “GRADUALITY”
Since the beginning of the legislature, Meloni has always spoken of gradual introduction of reforms, starting from the most invasive, such as that of the Flat Tax . “Important work began – he said – last year with an increase in the flat tax amount to 15% for self-employed workers: this measure is confirmed, and a rule that I consider very important which is l extraordinary continuity allowance, a sort of redundancy fund also for self-employed workers. Income is also expanded to take advantage of this social safety net. Furthermore, for the first time this year the self-employed will not have to pay the Irpef advance in November but will have to pay it in 5 installments from January to June", he explained.
MULTINATIONALS: THE GLOBAL MINIMUM TAX STARTS FROM JANUARY
From 1 January 2024, the global minimum tax of 15% will be introduced for multinational groups with an annual turnover exceeding 750 million. The rule transposes the European directive on the matter and follows the common approach, shared at G20 and OECD level, to reduce distortions due to different levels of taxation in countries.
MINISTRIES: CUTS TO PROJECTS
The maneuver also included cuts. “A sacrifice was asked of all the ministries, which had to give up various projects and ideas – said Minister Giorgetti – and a significant spending review was implemented, of the order of 5% on all discretionary expenses, except the regional and local authorities sector".
THERE IS PLACE IN THE MANEUVER FOR THE BRIDGE OVER THE STRAIT
What has not been cut is the allocation for the Bridge over the Strait of Messina. “Belying weeks of chatter, there is the necessary coverage for the stable connection between Sicily, Italy and Europe,” said Infrastructure Minister Matteo Salvini during the press conference relating to the approval of the Budget law.
THE FULL TEXT OF THE MANEUVER DL. THE DRAFT
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/legge-bilancio-manovra-governo-meloni-24-miliardi/ on Mon, 16 Oct 2023 14:22:41 +0000.