Italy’s governing coalition is grappling with mounting tensions as it struggles to finalize the 2024 Budget Law. Vice Prime Minister and Foreign Minister Antonio Tajani announced plans for a meeting with Prime Minister Giorgia Meloni and Deputy Prime Minister Matteo Salvini to resolve persistent disagreements among coalition partners. The fiscal decree, running parallel to the budget, remains a major sticking point. Among the contentious issues are the proposed reduction of the RAI license fee, pushed by the League but opposed by Forza Italia, and conflicting tax policies, with Forza Italia advocating for a lower income tax rate while the League pushes for an expanded flat tax.
Pension reforms have also deepened divisions within the coalition. While both Forza Italia and the League support raising minimum pensions to benefit vulnerable households, Meloni’s Brothers of Italy has adopted a more cautious approach, prioritizing fiscal responsibility. The split reflects broader disagreements over resource allocation, such as a League-backed amendment to the Competition Bill that imposes additional costs on energy utilities. Though passed, the measure has faced criticism from coalition members, illustrating the challenges of balancing competing priorities within the government.
Adding further strain, the League has intensified its call for an additional €3 billion to fund the Bridge over the Strait of Messina, a controversial infrastructure project. While the League views the bridge as a key priority, other coalition partners have been reluctant to reopen the budget to secure additional financing. As disagreements persist across multiple fronts, the coalition’s ability to deliver on its promises while maintaining unity remains uncertain.
