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Budget Law Talks at Palazzo Chigi: Government and Unions Clash Over Key Issues

Budget Law Talks at Palazzo Chigi: Government and Unions Clash Over Key Issues

PM Giorgia Meloni Highlights Fiscal Discipline Amid Union Criticism

At a meeting at Palazzo Chigi, led by Prime Minister Giorgia Meloni, the Italian government and union leaders discussed the contentious new budget bill. Meloni emphasized the administration’s focus on “priorities that promote growth and maintain fiscal responsibility,” citing the government’s commitment to long-term benefits rather than short-term popularity. “We’re handling a heavy legacy of debt,” Meloni noted, emphasizing the administration’s break from past budget approaches.

Meloni pointed out that the government had secured financial support from banks and insurance companies for the budget, a shift from previous years where, she said, budget resources often went toward supporting these sectors directly. She also announced structural tax reforms, including a reduction in income tax brackets from four to three, while future adjustments depend on available resources.

Union leaders expressed strong concerns. Maurizio Landini, General Secretary of CGIL, called for a complete overhaul of the budget and criticized the government for presenting it to Parliament without union consultation. Similarly, Pierpaolo Bombardieri of UIL raised concerns about stagnant wages and inflation, calling for tax exemptions on contractual raises and local-level wage negotiations to recover lost purchasing power.

CISL leader Luigi Sbarra called the budget a “starting point,” urging the government to amend it to boost minimum pensions, reverse cuts in education and public sector hiring, and increase funding for non-self-sufficiency. Sbarra concluded with a call for responsible, collaborative policy-making to foster economic recovery and social cohesion.