Budget, Giorgetti targets tax cuts. Salvini returns to his "chastise" of banks.

Today Istat updates its 2024 public accounts.

The budget plan is entering full swing. Today, ISTAT's publication of its updated economic accounts for 2024 will provide insight into the deficit and debt trends , as well as the room for maneuver next year, given that a revision of the data would impact the current year's estimates. Budget discipline remains the government's mantra, alongside the goal of cutting middle-class taxes and the "Scovata" (Scrappage) 5 program. All this while the Meloni government continues to receive positive feedback from rating agencies, thus enhancing market credibility, which translates into a narrowing of the spread. This reliability was also reaffirmed by Fitch in recent days.

"Our goal is to reduce the tax burden and also achieve peace with taxpayers. We must not forget the commitments and promises we have made" on this very day and over the years, emphasized Economy Minister Giancarlo Giorgetti from the stage in Pontida. "Every euro we spend is a euro that must be demanded in taxes from our citizens: responsibility requires us to be very rigorous in how we spend our money, and this government's success has been in reducing waste."

And regarding the resources to finance the measures, Deputy Prime Minister Matteo Salvini once again took aim at the banks. "I'm sure Italian banks will contribute to help those who can't make it. Banks that earned more than €46 billion last year," the League leader said from the stage in Pontida. "I don't think that if, instead of earning €46 billion and then distributing dividends worth hundreds of millions of euros, they earn less, anyone in the halls of power and finance will have trouble paying the bills," he added, emphasizing that "helping the vulnerable is a priority."

Meanwhile, the possibility that Italy will exit the EU excessive deficit procedure as early as 2025, a year ahead of schedule, is becoming increasingly realistic. This would further boost the country's international credibility and open the way for EU negotiations to waive the constraints on net primary spending for defense and security investments.

To cover the reduction of the median tax rate from 35% to 33% and the debt relief program, the government could raise funds from potential contributions from banks and additional revenue and debt settlement resources. However, the use of "savings" from debt interest payments is strictly prohibited, as they must be allocated to reducing the public debt itself. Meanwhile, in preparation for the budget plan expected in Parliament at the end of October (the Public Finance Planning Document (DPFP) will be published by the 20th), the Ministry of Labor is preparing proposals that will then be reviewed by the Ministry of Economy and Finance.

"Pay attention to the balance" of the budget, "but some things can be done," noted Labor Minister Marina Calderone at the Open Festival in Parma, announcing proposals on wages, pensions, and welfare. The focus is on early retirement plans for those in strenuous jobs and supplementary pension plans for young people. "I believe everything fits together well: being open to addressing vulnerabilities and providing early retirement for those in strenuous jobs; for the rest, supporting young people in building a retirement plan over time that meets their need for a dignified life, and introducing a second pillar of supplementary pensions," Calderone stated. "Young people must become ants, already saving in a pension piggy bank and connecting it to other issues," such as supplementary healthcare.