Giorgetti urges debt control and proposes 5% flat tax on pay rises
Speaking at the UDC party festival, Italian Economy Minister Giancarlo Giorgetti stressed the necessity of maintaining market confidence and managing public debt as higher ECB interest rates increase borrowing costs.
Italian Economy Minister Giancarlo Giorgetti addressed the UDC festival via video link, discussing the financial pressures created by the European Central Bank's interest rate increases. Giorgetti noted that higher borrowing costs affect families, businesses, and the state, making debt management and market confidence essential for bond issuance.
In these moments, with the increase in rates, one understands how important it is to keep debt under control, and to have the confidence of markets and savers to place it.
Looking ahead to the upcoming budget law, Giorgetti called for a selective review of government measures to prevent duplicating benefits for some income brackets while excluding others. He pointed to the middle class and demographic decline as key concerns, confirming that the ruling coalition will discuss a proposed 5% flat tax on salary increases for young workers in the coming weeks. The mechanism requires employer cooperation, where businesses raise wages in exchange for a lower state tax rate on that additional pay.
