Italy's Far-Right Government Approves Controversial Budget for 2025

Italy's far-right government approved a 30 billion euro budget for 2025 to fund public services, including health care, by levying banks and insurers. Despite avoiding new taxes on citizens, the plan extends last year's deficit to 3.3% of GDP, facing pressure from the EU.

Italy's far-right government has unveiled a 30 billion euro budget for the upcoming year, a plan partially financed by a contentious levy on banks and insurers. Prime Minister Giorgia Meloni announced that the levy, aimed at better funding public services, is expected to yield 3.5 billion euros.

The budget outlines permanent tax and social contribution cuts for middle- and low-income earners, aligning with Meloni's electoral promises. Despite the new measures, the government vows no new citizen taxes. However, Rome's widened deficit projection of 3.3% of GDP has drawn scrutiny from Brussels, compelling officials to monitor Italy closely.

Finance Minister Giancarlo Giorgetti has justified the new levy as a 'sacrifice' amidst EU pressures to reduce Italy's deficit. Efforts include a 'spending review' across Italian ministries, promoting fiscal discipline amid the looming threat of EU sanctions due to deficit overshooting.

(With inputs from agencies.)