Istalia

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The Government follows up its reform of welfare with the Universal Basic Income Sustainability Plan

Cantalamessa's third term begins with further step to develop the new model to ensure economic security, productivity and modernization of public spending

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July 5693

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ROMULA - Just months after being sworn in for its third consecutive term, the Cantalamessa Government today presented its medium- to long-term Sustainability Plan for the Universal Basic Income, the measure already under trial since the last year, starting from next year will be progressively adopted nationwide and destined to become the heart of the national welfare system. The presentation to the press took place at Antinori Palace, where Minister Secretary of State Marina Cantalamessa outlined the key elements of what she called "a comprehensive and modern review of public spending on social security and welfare".

The plan aims to ensure that the UBI will become the structural foundation for economic security and social cohesion, sustainable over time and capable of adapting to changes in the labor market and the national economy.

As part of the long-term sustainability plan, the government is already preparing a fiscal reform of the progressive tax system, the restructure of several existing environmental and digital taxes to allocate additional resources to the UBI. A comprehensive review of current benefits, like unemployment, disability, child benefits and so on will also be implemented, as they will be replaced by the new universal income.

Aside the fiscal reform, expected for the end of the year, the main provision of the Plan that will be already adopted is the creation of the National Social Security Stabilization and Management Fund, funded during years of economic growth, to ensure continuity of payments during periods of recession. According to the government, this fund will be managed strategically, with transparent rules and diversified financial instruments to minimize risks and volatility. The new Fund will see the involvement of both Cassa Depositi e Prestiti, the state financial holding that, among other things, manages the Postal savings of the Istalian Postal Service, and of the Istalian Strategic Investment Fund, the sovereign found of Istalia, which will continue to be crucial for the sustenaibility of social security of the country and the well-being of its citizens.

The plan, furthermore, includes clear indicators to assess the impact on poverty, employment, inflation and domestic demand. Automatic adjustment mechanisms will allow the UBI to track GDP, inflation and the unemployment rate, ensuring stability and sustainability. The local pilot, already launched in the previous legislature, will continue to provide useful data for potential adjustments prior to its national rollout.

The government aims also to further incentivize participatory and mutualistic corporate welfare, in collaboration with the state, insurance companies and businesses, make it working in tight coordination with the UBI. The plan includes periodic ten-yearly audits of the efficiency of public spending, with concrete measures to simplify and improve administrative processes.

New strategic investments are also being considered in the most critical sectors: green infrastructure, healthcare, education and technology. The government plans a major construction program for new hospital and school facilities, compliant with modernity, safety and sustainability standards, accompanied by investments in new qualified personnel and innovative health and educational technologies. At the same time, public-private partnerships will be encouraged to promote social and entrepreneurial innovation and incentives for training and development of skills will be allocated to support a more dynamic mobility in labor market, amplifying the value of the UBI without further burdening the budget.

But the sustainability plan also incorporates a continental dimension: Istalia intends to collaborate with SOMECO partners to harmonize social and fiscal standards, share experiences and prevent competitive distortions. The stated objective is to make national welfare compatible with an integrated market that is resilient to global fluctuations.

In summary, commented Marina Cantalamessa:

This plan not only will guarantee the funds and sustainability for the Universal Basic Income, but it will build an integrated system of fiscal policy, labor market and welfare. A system capable of adapting to economic and social changes, reducing the risk of dependency and maximizing the positive effects on growth, social cohesion and citizens' quality of life.