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Meloni: “Budget law that helps the middle class, not the rich. There is no pardon”. Letta: "Inadequate and unfair"

The Prime Minister speaks of a "courageous maneuver and the result of political choices". Giorgetti: "Courage to make unpopular choices". But Letta takes to the streets on 17 November

Meloni: “Budget law that helps the middle class, not the rich. There is no pardon”. Letta: "Inadequate and unfair"


Una “brave” maneuver and the fruit “made of political choices”. These are the words with which the Prime Minister Giorgia Meloni, together with the ministers of Economy, Giancarlo Giorgetti, of Infrastructure, Matteo Salvini, of Labour, Elvira Calderone, and the deputy minister of Economy, Maurizio Leo, presented the 2023 Budget Law approved yesterday evening by the Council of Ministers. 

“I am very satisfied with the work done with this Maneuver because it is not limited to an accounting job but makes political choices. It is "a maneuver that follows and tells of a political vision", said the Premier

“I am happy that the approach we have had, as I see it, is that of a family budget, when you deal with a family budget, if there are no resources, you don't worry about consent but about what is the right thing to do to make the family grow in the best way”, he continued, reiterating that “This is ua maneuver resulting from political choices, as is right and normal for a political government, we have chosen and concentrated resources, it is a bold move, consistent with the commitments we have made with the Italian people and who are betting on the future,” Meloni said. 

In the context of the discussion on the maneuver in the majority "I saw no selfishness but a desire to work along the lines decided" and for this "I thank the parties of the majority". The reference seems to be to the flag measures promised by the various parties - Lega in primis - which, inevitably, have been downsized due to limited resources available and the need to allocate a large part of funds (21 billion) to combat high bills. In short, it is a balanced maneuver, forced to come to terms with reality. 

Now "we hope that the parliamentary process can be improved" with contributions "even from the opposition and we hope for a serious and responsible attitude like the one we had".

Entering the merit of the Maneuver worth 35 billion euros, Prime Minister Meloni explained: there are two major priorities: growth, that is, securing the productive fabric" and, on the other hand, "social justice to pay attention to families and lower incomes". Meloni then reviewed the main measures contained in the Budget law, from the stop to basic income from 2024 for those who can be employed to pensions with the introduction of quota 103 and the changes to the Women's option, from the changes to parental leave and the family allowance up to the tax wedge.

Dear Bills

“As promised, the major item of expenditure of the maneuver concerns the issue of expensive bills: out of a maneuver of 35 billion, the measures for energy are around 21 billion, obviously the two fundamental choices concern the tax credits for companies, for which a credit is envisaged which is applied on part of the increase that companies have undergone compared to the same period of the previous year. So we confirm and increase the credits from 40 to 45% for energy-intensive companies and up to 35% for non-energy-intensive ones,” Meloni said.

Flat tax and tax wedge

Responding to the criticisms received in recent weeks on the flat tax, the Premier explained that in the Budget law there are "three flat taxes”, including that “on incremental income to VAT numbers which have a flat tax of 15% on the higher profit achieved compared to the previous three-year period with a maximum threshold of 40 thousand euros, which demonstrates that it is a measure aimed at the middle class, which does not favor the rich and recognizes the sacrifices of those who work". Meloni also recalled the increase in the flat tax at 85 thousand euros and “the introduction of the 5% flat tax on productivity bonuses of up to 3 euros against the 10% currently envisaged and coupled with an extended fringe benefit”.

On the cut to tax wedge the Prime Minister reiterated: “It is the most expensive measure of the entire budget law: it costs 4 billion euros and this indicates that the government's other priority is to raise” the salary of “those with lower incomes”.

"On the parental leave: I have always thought that many mothers could not afford it with 30% of the salary. We have added one month of optional paid leave at 80% and usable up to the sixth year of life. A sort of piggy bank of the time without finding yourself in difficult economic conditions”, continued Meloni.

Family

“The measures for the family and birth rate are valid one and a half billion euros, a choice that does not have many precedents. The single allowance is increased by 50% for everyone for the first year of the child's life, by 50% for three years for large families. The VAT on all early childhood products will be 5% and also for what concerns non-compostable female hygiene devices (sanitary pads, ed) the measures for the purchase of the first house on young couples are confirmed”. 

Basic income

On basic income, the Premier said "we are faithful to our principles, we continue to protect those who cannot work, we also add pregnant women, but for those who can work it will be abolished at the end of next year and cannot be received for more than 8 months and expires with the first job offer". “I see political forces calling the square, everything is fine but I would like to know if whoever thought of it imagined it as an instrument of the state to take care of people aged 18 to 60. There are people who have been taking it for three years, obviously it hasn't worked or for some Italians it has to go indefinitely, I believe that the State must take care of them to find a job". 

"There is a connection with training", explained the Minister of Labour, Elvira Calderone "there is the passage from the subsidy to activation, not as a reminder but as a compulsory path. Seasonal work is made compatible within 3.000 euros with income; controls will be intensified and the benefit will expire after the refusal of a reasonable offer”.

Pensions

In addition to the introduction of quota 103, the confirmation of the Ape Sociale and the changes to the women's option, in the matter of pensions, the prime minister explained: "We will reevaluate the minimum pensions of 120%” but with a mechanism of increase up to 2000 euros but then "the increase gradually decreases to pensions over 10 times the minimum, ie above 5 thousand euros for which the indexation ends at 35%". The maneuver on pension matters intervenes “on pension ladder which would have started from January 1st. Without an intervention, retirement would have started at 1 from 67 January": it will be possible to retire at 62 with 41 of contributions, but with bits of common sense. Anyone who decides to enter this window, until the requirements are met, will not be able to take a pension higher than 5 times the minimum, therefore between 62 and 67 years of age, until the requirements are met”.  

Speaking during the press conference, the Deputy Prime Minister and Minister of Infrastructure and Transport Matteo Salvini, he said: “It was renewed the Maroni bonus in Maneuver, in addition to having stopped Fornero which was not a political but a social obligation of ours, those who have reached limits but will continue to work will have a 10% bonus on their salary". “Start a journey,” she added.

Revenue authorities 

As regards the fiscal measures, including the cancellation of old files up to a thousand euros, the Prime Minister said: "The spirit from which we move is a different relationship between the State and the taxpayer: the state is no longer aggressive and punitive but just and understanding towards those in difficulty”. Meloni ensured that “there is no forgiveness but only operations advantageous for the State”. Taxes of less than 1000 euros and prior to 2015 are “canceled – he explains –. For all the others, the amount due is paid with a single increase of 3% and installments".

In the financial maneuver there will be "a law to combat unfair competition in 'open and close' businesses that is, those who open, do not pay a euro to the state coffers, close before the checks, disappear and start over. Now when the Agenzia delle Entrate has signs, it summons (those entrepreneurs, ed) and if it doesn't have the necessary reassurances, it can cancel the VAT or ask for a surety on the payment of taxes”. Meloni concluded: “It is a measure of common sense, because traders must be defended”.

France

Answering journalists' questions, Meloni defended the Government's actions in the clash with France on the subject of migrants. From Italy "respectful tones" were used, he said, emphasizing that "I think I did my job defending the interests of the nation and it doesn't seem to me that anything around here is collapsing or that with the arrival of a right-wing government there has been isolation or rising spreads. Instead, it seems to me that there is a very serious approach that respects the national interest”.

Bickering with a reporter present at the press conference, Meloni said: “You have been wanting to teach me something for a lifetime. Contrary to what was written, however, I point out that since we have been in government there are no locusts or plagues of Egypt, because when you are respectable you are respected”.

Giorgetti: "Courageous choices in Maneuvering"

The Minister of Economy, Giancarlo Giorgetti, stated: "In presenting the Nadef we had indicated a prudent, responsible and sustainable line: I think we have demonstrated it", with the addition of a "courageous and fair" approach. When you have the courage to make even unpopular choices, it is something important”. "We proudly present it to the Italians and to all savers who continue to trust, I remember the success of the BTP Italia".

The reaction of the oppositions

“Saturday 17 our demonstration against one improvised and unfair maneuver. Inadequate with respect to the risk of recession and soaring inflation. We anticipated it in our Assembly on Saturday. Now, after yesterday's decisions, we confirm it with even more conviction,” wrote the secretary of the Democratic Party, Enrico Letta. 

The dem leader was answered shortly by the Action leader, Carlo Calenda: “Enrico, demonstrating against the maneuver without proposing an alternative is exactly the opposition that the right wishes to have. We will send you the detailed document on the proposals for a fairer and more just counter-maneuver. Let's work together."

On the barricades for the changes to the basic income, the president of the M5S, Giuseppe Conte: “They are inhumane, we are willing to do anything to stem the crazy plan. We will take to the streets."

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