Istalia

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The Government launches a package of immediate measures to accompany the tax reform

With the support of the National Council for Economy, Labor, and Social Affairs, the government is launching a package of immediate measures. The opposition is critical: the PNL considers it "a Band-Aid on an amputation", the D&L considers it insufficient, while the UOD calls for broader measures

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October 5665

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ROMULA - Following the implementation of the new tax reform, the Moccia government recently presented a package of "immediate measures" designed to smooth the transition and strengthen the country's attractiveness for productive investments.

The plan, presented by both the Minister of Finance, Federico Titta (Greens), and Minister of Economy, National Industry and Trade, Raniero Palmas (PSD), comes at a time when the Istalian economy remains solid and expansive, but is now affected by questions about the future impact of the new tax rules.

The package consists of five pillars:

Strengthening tax administration: accelerating the digitalization of services, with unified online help desks and targeted control systems to combat tax evasion without exacerbating the situation of compliant taxpayers.

Tax stability clauses for qualified investments: guaranteeing tax rates frozen for 5–10 years for those investing in strategic sectors such as the green transition, technological innovation, scientific research, and advanced manufacturing.

Immediate tax credits: concrete support for businesses for research and development projects, advanced worker training, and digitalization processes, with simplified access procedures.

Revitalization of the "National Council for Economics, Labor, and Social Affairs": a constitutional body that has long been neglected, now the Government has revitalized it as a "permanent liaison table" between institutions, businesses, unions, industry groups, and consumers. The Council will become the linchpin of economic and social dialogue, with guidance and monitoring functions on the impact of fiscal and economic policies.

At the initiative of several parliamentarians from the Greens' Movement group, led by Eva Santoboni, President of the party National Coordinating Committee, aimed to involve all political forces in the development of the new Council structure, a proposal will be presented to Congress in the coming days to create a Special Congressional Committee. This committee will bring together representatives of the Economic Affairs Committee, the Social Affairs and Labor Policies Committee, and the Legal Affairs Committee, in order to develop a targeted law to reorganize the composition of the Council and assign clearly its tasks and missions.

International campaign to promote the Istalia brand: a communication strategy aimed at highlighting political stability, quality of life, and high-value investment opportunities, with roadshows and institutional missions to major global financial markets.

According to the Minister of Finance and Treasury, these measures:

They do not represent a rethinking of the tax reform, but its completion: they serve to ensure effectiveness, certainty, and stability. Istalia remains an open, competitive, and socially just country.

With these measures, the government aims to:

• keep the productive system competitive and attractive, despite the increase in taxes on high incomes and speculative income;
  
• stimulate long-term investments, discouraging short-term financial transactions;
  
• provide legal certainty and predictability to businesses;
  
• direct capital and resources toward sectors deemed crucial to the country's "economic and technological sovereignty."
  

The opposition greeted the announcement with strong skepticism and varying tones:

PNL, through its leader, Franco Del Nibbio, former Minister of Finance and Treasury and a staunch supporter of his predecessor, Valeriano Giunio, harshly attacked the package:

The government's measures are little more than a Band-Aid on an amputation. They want to cover up the enormous damage the tax reform will cause to the productive system with incentives and promises.

The Liberal-Radicals of D&L have proven to be the most critical, and the party's President, Carlo Mainardi, described the proposal as follows:

It's a cosmetic plan that doesn't compensate for the punitive nature of the reform. Investors aren't just looking at incentives, but at fundamental trust: and this government is eroding it day by day.

From UOD, Political Secretary Daniela Giannelli takes a more moderate stance:

We cautiously welcome these measures, which are a step in the right direction. But it's crucial that they don't remain stopgap measures: we need a clear medium- and long-term agenda to bring stability to the country and security to the productive sector.

From business associations, instead, the assessment was mixed. On the one hand, FederIndustria appreciated the idea of relaunching the National Council as a stable forum for discussion and welcomed the incentives for research and SMEs. On the other, however, there are concerns.

A spokesperson stated:

The strengthening of tax credits and the guarantee of stable tax rates are incouraging signals. However, the combined effects of the tax reform and the new rules risk penalizing sectors with low margins. Businesses hope that future measures will find balances capable of safeguarding competitiveness without depressing the productive fabric.

Many observers emphasize, infact, that the package's effects can only be truly measured in light of additional medium- and long-term strategies. The government has already assured that it is working on the next steps and that next year the Ministry of Economy will finalize the package of measures designed for the medium term.