ITALY POPULIST GOVERNMENT PACT

  1. Guaranteed income for the poor: Poor families will get € 780 basic monthly income, provided recipients actively seek work, the parties say.
  2. Mass deportations: The parties demand more EU help for Italy, the main destination for migrants arriving from North Africa. They also insist that the estimated 500,000 undocumented migrants in Italy must be deported as a priority. That would require the creation of temporary stay facilities throughout Italy for migrants earmarked for expulsion. The plan calls for effective relocation of asylumµ-seekers EU wide, a scheme already rejected by some EU states. It also demand stronger co-operation to fight people-smuggling gangs.
  3. Two income tax rates: New flat tax rates are to be introduced. The plan aims to reduce income tax rates to just two brackets set at 15% and 20%. Families would receive a € 3,000 annual tax deduction based on household income. Sales and excise tax increases next year, worth € 12.5 billion would be scrapped.
  4. Cutting Italy's debt: Friction is expected with the EU over Italy's public debt; it is currently 130¨% of national output (GDP), the second-highest in the EU after Greece. The parties say they want revisions to the EU's Stability and Growth Pact, which sets a tough budget deficit limit of 3% of GDP. The plan aims to reduce debt through the revival of internal demand, not by continuing austerity. The plan makes no mention of Itay withdrawing from the eurozone, despite much criticism of the euro by both parties.
  5. Reaching out to Russia: The populist leaders disagree with the EU sanctions on Russia and want them lifted. They do not see Russia as a military threat but as a potential partner for the EU and NATO. They want to work with Russia against the smuggling of migrants across the Mediterranean and the continuing influence of violent Islamists. They also see Russia as a key player in ending the wars in the Middle East. 
  6. Pension reform: The minimum monthly pension is to  be set at € 780. The plan abolishes the current pension reform that raises the retirement age in phases. Instead, a new points system would combine people's total years of social security contributions with their age. The total must be at least 100, meaning that someone who has âod into the system for 41 years, for example, could retire at 59.

Add new comment