Italy abolishes social assistance for the poor

On Monday, the Italian government abolished the “citizenship income”, an aid that benefits millions of poor people, and replaced it with a social instrument with a limited scope, in a decision the opposition and trade unions described as a “provocation”.

The Italian government headed by Giorgia Meloni also voted to ease the terms of employment with a fixed-term contract and exemption from employer contributions for a period of one year for companies that employ people who receive this social instrument known as the “incorporation deed”, on a permanent contract or as apprentices.

The stated aim is to stimulate jobs and encourage young people to find work in the third economy in the euro area where the unemployment rate among young people aged between 15 and 24 years (22.4 percent in February) is almost three times higher than the national average (8 percent). .

For its defenders, the “citizenship income” is a social calming factor that has produced results in the poor regions of the south, while the government believes that it is costly (8 billion euros in 2022) and keeps its beneficiaries out of working life.

Meloni’s office has not released the final text, but its outlines have been leaked to the press.

From January 1, 2024, the “citizenship income” will be replaced by the social instrument at a cost of 5.4 billion euros annually.

While the “citizenship income” was intended for every person who appears to have received a very modest income, including young people, the “integration check” will be allocated to families that include persons with disabilities or minors, or those over 60 years of age.

“We’re reforming citizenship income to make a difference between those who can and can’t work,” Meloni said.

However, the government indicated that it would propose exemptions from recruitment fees for those under the age of 30.

The value of the social check will be set at 500 euros per month (630 euros for families with people over 67 years of age or with a serious disability) plus 280 euros for families who do not own their own home. It is for a period of 18 months and can be renewed for a year after stopping for one month.

On the other hand, the government announced the development of a professional “access tool for activity” for people who are able to work, and participation in training or “projects useful to society” becomes compulsory as of September, provided that a compensation of 350 euros per month is paid as a maximum over a year. The cost to the state is estimated at about 2.1 billion euros in 2024.

“provocation”

According to the Italian Institute of Statistics, the “citizenship income” introduced by the five-star government in 2019 lifted one million people out of poverty, although almost half of the poor do not receive it either because they are not eligible (less than 10 years of residence in Italy) or because they did not submit the application.

In 2022, 1.6 million families, representing about four million people, especially in the south of the country, will benefit from it, with an average of 550 euros, according to INPS.

The opposition and trade unions strongly criticized the government for calling the Council of Ministers to convene to discuss these issues specifically on May 1, which they considered a “provocation”, according to former Speaker of Parliament Roberto Fico.

For his part, the former Prime Minister belonging to the Five Star Movement, Giuseppe Conte, denounced this decision, saying, “A serious government does not meet on May 1 to condemn young people to poverty for life and cancel their dream of obtaining a home and having children. It meets to adopt a legal minimum.” for wages.”

“By breaching the secular calendar of the left, Georgia Meloni wanted to strip May 1 of its symbolism and meaning” and “challenge the social domination of trade unions over the world of work,” said the newspaper “La Repulica”.

For her part, Meloni defended, “On the contrary, it is a beautiful gesture and a privilege to honor the workers on this feast day and to provide the responses they expect.”

Thousands of people demonstrated throughout the country Monday, from Turin to Rome, where government buildings were pelted with eggs, while the main demonstration of the major trade union federations in Italy (Cgil, Cisl, Uil) took place in Potenza, in the south of the country.