(Bloomberg) — Italian Premier Giorgia Meloni won the final green light from parliament for her economic plans for next year.
The Senate’s Thursday vote in favor of the budget worth more than €30 billion ($31.9 billion) will be a relief to Italy’s new leader as it comes just ahead of a year-end cut-off that would have triggered a government shutdown.
The 2023 plan includes financing for flagship measures promised by the government including tax cuts for the self-employed and a fiscal truce. Two-thirds of the money will be allocated to measures already in place to ease the impact of the energy crisis.
The budget law also shows a willingness by Meloni to walk back some pledges in order to fall in line with European Union rules. Rome scrapped plans to allow sellers to refuse credit card transactions below €60 following criticism from Brussels.
Meloni’s plan also takes a cautious approach to borrowing. Italy is targeting a deficit of 5.6% of gross domestic product this year and plans to cut that to 4.5% in 2023 and 3% in 2025.
Those numbers are less ambitious than previous goals but still show a determination to respect the EU’s 3% limit, currently suspended in the wake of the Covid pandemic.
Meloni told reporters in Rome that Italy will continue to keep its public finances in check.
The budget will be partly financed by a higher windfall tax on energy companies and a reduction in so-called citizens’ income.