Italian government introduces plans for massive tax cuts in 2024

Italy's government has approved a budget for the coming year that includes measures totaling a significant tax cut worth 24 billion euros and increased spending in an attempt to boost economic growth.

As reported by Reuters, this decision has been made despite concerns in the financial markets regarding the country's strained public finances.

Prime Minister Giorgia Meloni referred to the budget as "very serious" and "realistic" during a press conference, while Economy Minister Giancarlo Giorgetti expressed confidence that it would be positively received by both the financial markets and European Union authorities.

The budget also designates approximately 1 billion euros for a range of measures aimed at addressing Italy's demographic crisis, namely the aging of the population. One of these measures eliminates social contributions for working mothers with at least two children, hoping to encourage the increase of birth rates.

However, the government is also discontinuing a reduction in sales tax on baby products that is currently in place for the next year. This move comes as Italy grapples with a 14th consecutive annual decline in birth rates, resulting in the lowest number of births since the country's unification in 1861.