Italy’s government wins Senate confidence vote on 2024 budget
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ROME, Dec 22 (Reuters) – The Italian government on Friday comfortably won a vote of confidence in the Senate, which it called to speed up approval of its expansionary 2024 budget before a year-end deadline.
Prime Minister Giorgia Meloni’s second budget drives up next year’s fiscal deficit to 4.3% of gross domestic product (GDP) from 3.6% forecast in September, allocating almost 16 billion euros ($17.60 billion) in tax cuts and increased spending.
The government won the vote by 112 to 76.
One of the budget measures most touted by Meloni is an extension to 2024 of temporary cuts to welfare contributions paid by companies and workers, in a move aimed at increasing the take-home pay of middle and low-income workers.
The budget also marginally raises the retirement age, increases spending to fund the health service and renew public sector contracts, and creates a life insurance guarantee fund to protect policy holders and avoid cases similar to Eurovita.
The company this year became the first Italian insurer to be placed under special administration after high interest rates and a drop in the value of bonds led savers to redeem their policies, draining its capital reserves.
Another new measure introduced in the financial law requires companies operating in Italy to take up insurance to cover damage caused by increasingly frequent natural disasters.
Barring surprises, the lower house Chamber of Deputies should give parliament’s final approval to the budget in a second reading next week.
