Italy's parliament has recently approved the 2025 budget, marking a significant achievement for Prime Minister Giorgia Meloni's administration. The Senate passed the budget on December 28, 2024, with 112 votes in favor out of 181 members present [05a671cd]. This budget is designed to adhere to EU fiscal rules while implementing tax cuts aimed at stimulating economic growth [05a671cd].
One of the key objectives of the budget is to reduce the deficit to 3.3% of GDP in 2025 and below 3% by 2026 [05a671cd]. The government has also decided to maintain taxes on cryptocurrencies at 26% in 2025, with an increase to 33% planned for 2026 [05a671cd]. Despite these measures, Italy's debt is expected to rise due to ongoing state construction subsidies [05a671cd].
The economic outlook for Italy appears cautiously optimistic, with projections indicating a growth of 0.5% in 2024 and 0.8% in 2025 [05a671cd]. Additionally, lower borrowing costs could potentially save the government approximately €1.7 billion ($1.8 billion) in the upcoming year [05a671cd].
This budget approval comes on the heels of Italy's financial maneuver for 2024, which proposed a total of 24 billion euros, including new debt and savings from government operations [004b195c]. The previous maneuver focused on tax cuts, healthcare funding, and state employee contracts, but faced criticism for not adequately addressing job security and wages [004b195c].
As Italy navigates these financial strategies, the implications of both the 2024 maneuver and the newly approved 2025 budget will be crucial for the country's economic stability and growth. The government's ability to balance fiscal responsibility with economic stimulation will be closely monitored in the coming years [004b195c][05a671cd].