Italian gov't approves 24-bln-euro 2024 budget

Italian Prime Minister Giorgia Meloni (R) speaks at a press conference following the 2024 budget bill's approval in Rome, Italy, on Oct. 16, 2023. Italy's Council of Ministers on Monday adopted the country's 24-billion-euro (25.3 billion U.S. dollars) budget for 2024, which includes funding for a new bridge connecting the mainland to Sicily. (Photo by Alberto Lingria/Xinhua)

ROME, Oct. 16 (Xinhua) -- Italy's Council of Ministers on Monday adopted the country's 24-billion-euro (25.3 billion U.S. dollars) budget for 2024, which includes funding for a new bridge connecting the mainland to Sicily.

The budget bill also streamlines the Italy's tax code by reducing the number of tax brackets, provides free daycare for families with more than one child, and raises the workers' salary in the state health care system.

The next step is for the bill to be submitted to the European Union watchdogs for approval and for it to clear both houses of Italy's Parliament. By law, all these must happen by the end of the year.

Funding for the Messina Bridge project had been in doubt up until the final negotiations and the initiative is yet to win a thumbs-up from European regulators or from Parliament. But its inclusion in the budget is a significant step forward for the project.

If ultimately constructed, the bridge connecting the Sicilian city of Messina with Reggio Calabria near the toe of Italy's boot-shaped peninsula would be the longest suspension bridge in the world, measuring 3,666 meters.

The case in favor of the bridge includes promoting economic development of both sides of the bridge by reducing transport costs and times. But critics of the project worry about cost overruns, vulnerability to earthquakes and adverse environmental impacts. The project is reportedly to cost around 12 billion euros spread over 15 years.

The budget also reduces the number of income tax brackets to three from the current four, combining the lowest two income categories into one and increasing the cap for tax-free income by nearly 4 percent.

In addition to providing free childcare for families with at least two children, the budget would also allow mothers of at least two children to stop paying social security contributions on their income starting next year. The measures are part of a wider plan to help slow the decline in Italy's population.

"We want to dismantle the narrative that says having children is a disincentive to work," Prime Minister Giorgia Meloni told a press conference following the bill's approval.

The budget earmarks over 2 billion euros for salary increases for state health care workers. If passed, it would be a major blanket salary hike for the sector since 2020. (1 euro = 1.05 U.S. dollars)

Italian Prime Minister Giorgia Meloni (L) speaks at a press conference following the 2024 budget bill's approval in Rome, Italy, on Oct. 16, 2023. Italy's Council of Ministers on Monday adopted the country's 24-billion-euro (25.3 billion U.S. dollars) budget for 2024, which includes funding for a new bridge connecting the mainland to Sicily. (Photo by Alberto Lingria/Xinhua)