Monthly Briefs

Monthly Brief on the Italian Economy – December 2023

05/12 The parties of the governing majority reject, with a vote in Parliament, the opposition’s proposal to introduce a €9-euro minimum wage (see deep dive 1).

20/12 Finance ministers of EU countries agree on the reform of the European Stability and Growth Pact (SGP), with a compromise that will require countries with public debt/GDP ratios over 90%, like Italy, to reduce it by 1 percent per year (see the graph of the month for how Italy’s public finance developed since the Euro’s launch and under the SGP constraints).

21/12 With a parliamentary vote, Italy is the first and only country to reject the ratification of the reform of the European Stability Mechanism, causing uncertainty about the future of the instrument (see deep dive 2).

28/12 The decree containing the implementation of the Global Minimum Tax and the reform of fiscal incentives for the attraction of human capital (back) to Italy is published and becomes effective (see primary source in Italian).

28/12 Italy receives the fourth tranche of the RRF, worth €16.5bn (see primary Government source in Italian).

29/12 Parliament approves the 2024 budget law, with no major amendments from the government’s original draft, confirming the majority’s cohesion (see primary source in Italian) (for a deep dive on the budget law, see our November 2023 Monthly Brief)

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