Italy’s government, led by Prime Minister Giorgia Meloni, approved a cut in the anti-poverty subsidies known as “citizen’s income,” introduced four years ago. This measure has been criticized by the opposition and trade unions as a “provocation,” as it was announced on May 1, International Workers’ Day. According to the government, this measure will replace “citizen income” with an “inclusion check,” which will be limited to certain households that meet certain requirements.
Meloni’s government has justified the decision by arguing that the subsidy scheme is very costly, costing around €8 billion ($8.8 billion) last year, and claims that it discourages employable people, especially young people, from looking for a job. Since taking office in September, Meloni has pushed for tax cuts for businesses, vowing also to restore Italy’s economic credibility and reduce the debt incurred during the pandemic.
The new “inclusion checks” will begin to be implemented in January 2024 and will cost around €5.4 billion a year. They will be aimed exclusively at households with minors, people over 60, or disabled people, and will be capped at €500 per month.
The citizen income program was introduced in 2019 by the Five Star Movement (M5S), a populist formation, and its supporters claim that it grants significant help to millions of low-income households, particularly in the poorer southern regions. According to Italy’s Social Security, the citizen’s income benefited four million people last year, with average subsidies of 550 euros per month.
Critics of the measure have expressed concern about the impact it will have on the most vulnerable people in society, especially in the context of the pandemic. Former Prime Minister Giuseppe Conte, who led M5S, has said the government should not condemn young people to a life of precariousness, destroying their dreams of having a home or children. Roberto Fico, the former president of the Chamber of Deputies and a member of M5S, has called the decision a “provocation.”