Politics · Italy · 8 hrs ago

Italy’s budget plan sparks coalition dispute over pensions and tax

Italy’s budget plan sparks coalition dispute over pensions and tax

Italy’s government has announced its budget plan, but the full text is expected over the weekend.

The plan has sparked a dispute inside the governing coalition after the League said it would end the Fornero pension law, while a Brothers of Italy lawmaker urged waiting for a stronger economy before pension reform.

The plan would extend a flat tax to self-employed people earning up to €100,000 and cut income tax for people earning €50,000 to €55,000.

Union calculations show a sharp gap in the tax benefits: a self-employed person earning €100,000 would save about €10,000 a year, compared with about €100 for an employee earning €51,000.

Prime Minister Giorgia Meloni defended the plan as a set of choices, while opposition politicians and the CGIL union said it offered too little support to many workers and pensioners.

Parliament is due to receive the text next week, with hearings planned from 5 to 12 November and a possible deadline for proposed changes on 17 November.

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What people are saying

Giorgia MeloniPrime Minister of Italy
We have chosen to stand with those who work, those who have children, those who want to stay.
via ANSA
Christian FerrariCGIL confederal secretary
It gives no answer to 92% of workers and pensioners.
via ANSA
Marco OsnatoFratelli d’Italia deputy
There is no fundamental opposition.
via ANSA
Cecilia GuerraDemocratic Party group leader on the Chamber of Deputies’ Budget Committee
The budget penalises employees and middle-income pensioners.
via ANSA