Italian Prime Minister Giorgia Meloni has unveiled her 2025 budget, a spending plan designed to satisfy stringent EU deficit targets while maintaining favor with her voter base. However, critics argue the budget sacrifices critical public services in favor of politically motivated initiatives, raising the specter of austerity for a nation already grappling with economic uncertainty.
A Balancing Act Between Brussels and Rome
Meloni’s budget includes over €10 billion in tax cuts aimed at core voters and increased support for new parents, all while adhering to an EU-mandated annual deficit reduction of 0.5%. These measures are part of Italy’s inclusion in a special monitoring program following post-COVID overspending.
Despite a slowing economy, Meloni found fiscal breathing room by winding down a costly tax incentive for homeowners, increasing tax intake, and benefiting from lower interest rates on Italian sovereign debt.
“This budget shows that Italy is a credible country—unlike the chaos seen in Germany,” said Nicola Calandrini, a senator from Meloni’s Brothers of Italy coalition.
Criticism of Spending Cuts and Austerity
The budget has drawn sharp criticism for its spending cuts, particularly in areas such as health care, education, and social services. Over €11 billion in ministerial and municipal cuts are planned over the next three years, and a modest pension increase of €1.90 a month has been called inadequate by critics.
A glaring issue is the underfunding of health care, which watchdogs have linked to deteriorating conditions in hospitals. The recent death of a woman in a Palermo emergency ward after waiting eight days without treatment has become a tragic symbol of the system’s strain.
“It’s a squeeze on health care that costs lives,” journalist Francesco Costa noted in his daily podcast.
Politically Charged Priorities
While core public services face austerity, Meloni’s budget includes funds for projects and policies seen as politically motivated. Among the most contentious is €15 billion earmarked for a bridge linking Sicily to mainland Italy, a project critics have dubbed a “vanity initiative.”
A windfall tax on banks and a proposed cryptocurrency tax were both diluted, seemingly to appease business interests. Meanwhile, the government faced public outcry over a withdrawn provision that would have increased ministers’ salaries by €7,000.
“They’re cutting social services, schools, and health care but spending billions on vanity projects and weapons,” said Green and Left Alliance lawmaker Angelo Bonelli. “It’s the worst budget of all time.”
Opposition Outrage
Opposition lawmakers have decried the rushed passage of the bill through Italy’s Senate, claiming they were given little time to debate or propose amendments. Senator Matteo Renzi, leader of Italia Viva and a former prime minister, criticized Meloni’s approach as prioritizing party loyalty over the nation.
“Meloni is violating all the rules of parliament,” Renzi said. “You’ve put party before country.” However, in a biting remark, he added, “There’s not much to criticize—because there’s nothing in this budget.”
Looking Ahead: Austerity and Public Dissatisfaction
As Italy enters 2025, Meloni’s budget faces the challenge of reconciling Brussels’ demands with domestic needs. Critics warn that austerity measures could worsen public dissatisfaction, particularly as vulnerable populations face rising costs and underfunded services.
Meloni’s success in pushing the budget through a stable parliamentary majority might buy her political capital, but her ability to deliver growth and address citizens’ grievances will determine whether this budget is a calculated risk or a long-term misstep.