ROME (Reuters) – Italian Prime Minister Giorgia Meloni will introduce new welfare benefits for low-income seniors as part of a broader plan worth more than 1 billion euros (about $1.09), according to a draft decree seen by Reuters on Thursday. There are plans to introduce subsidies. billion) in two years.
An aging population and falling birthrates are a major concern for the eurozone’s third-largest economy, where more than a third of residents are expected to be over 65 by 2050, with production slowing. This has led to a decline in gender and an increase in welfare costs.
The government was scheduled to present the package at the end of a cabinet meeting later on Thursday.
According to the draft, among several measures, the scheme envisages a so-called “universal benefit” of 1,000 euros per month to support poor people over the age of 80 with “very serious welfare needs”. It is said that there is.
The benefit will be paid from January 1, 2025 and will continue until December 31, 2026, the document added.
According to statistics agency Eurostat, Italy is the oldest country in the EU with an average age of 48 years, and also has the highest level of old-age dependency, defined as the proportion of the population aged 65 and over to the working age population.
Pensions already consume more than 15% of gross domestic product (GDP), and the Treasury expects spending to reach 17% of output by 2042.
This makes it difficult for Rome to reduce its public debt. Public debt already stands at around 140% of GDP, the second highest in the EU, draining resources from other sectors such as education and childcare.
In its 2024 budget, the government has earmarked around 1 billion euros for several measures aimed at tackling Italy’s demographic crisis. One would temporarily exempt social contributions paid by working mothers with at least two children.
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(Reporting by Angelo Amante, Giuseppe Fonte and Alvise Armellini; Editing by Peter Graff)