The Italian Prime Minister has announced a major overhaul of Italy’s economy signalling a shift from previous governments on state benefits. Giorgia Meloni‘s plan includes a phase-out by the end of next year of the so-called “citizens’ wage,” the crowning achievement of the 5-Star Movement, which was in power from 2018-2021.
Ms Meloni had vowed to abolish the expanded welfare programme altogether during the campaign, arguing that it encouraged people to stay on welfare when they could work and was abused by fraudsters.
The changes announced on Tuesday would knock eligible workers out of the system after eight months or after they refuse a job offer, and requires recipients to actually live in Italy.
The overall budget modifications show a clear political shift, doing away with a basic income and a decade-old pension reform that Ms Meloni and her right-wing allies have long attacked while coming up with new measures to promote Italy’s perennially low birth rate.
Most of the money was earmarked to maintain campaign promises to offer further help to families and businesses coping with a surge in energy costs, and was on top of more than 60 billion euros already pledged by the previous government of Mario Draghi.