The new Italian government has not been in office long. Prime Minister Meloni sees the budget vote in the House of Representatives linked to a vote of confidence – and wins. Italy’s new debt is rising.
Italy’s new right-wing government has won a vote of confidence in the House of Representatives with a comfortable majority. The aim of the move was to speed up legislation for the 2023 draft budget. The government prevailed in the vote by 221 to 152 votes. Prime Minister Giorgia Meloni would have had to resign if she had lost the vote.
In Italy, such votes of confidence are often used to stifle lengthy debates over details. The second chamber, the Senate, is likely to adopt the draft in a second reading next week. Meloni’s first budget provides for significantly higher spending than previously expected.
New debt will thus climb to 4.5 percent in relation to economic output. In September, 3.4 percent had been calculated. In order to mitigate the high energy costs, more than 21 billion euros are earmarked for tax breaks and other aid for companies and households. This year, Italy’s new debt adds up to 5.6 percent of economic output. Next to Greece, Italy is the most indebted country in the euro zone. The entire debt mountain is around 145 percent of the gross domestic product.
The bill contains other controversial measures. For example, the retirement age is to be lowered under certain conditions, non-limited employment contracts are financially supported for younger people, and in some cases lower penalties for tax offenses are provided for companies and private individuals. If the budget is not approved by the end of the year, ceilings for government spending in one month will automatically come into effect.
Before the vote of confidence, Luca Ciriani, the minister responsible for parliamentary affairs, ruled out that the deadline would pass without a decision. “It would be detrimental to the government and the country’s international reputation.”
