Italy Makes Tax Wedge Reduction Permanent, Giorgetti Says

Italy’s cabinet has made a reduction in a tax on wages permanent, Finance Minister Giancarlo Giorgetti said.

The tax wedge, or the difference between what workers cost employers and what gets paid out to them, cost the government around €10 billion last year. Giorgetti confrimed that the measure will become structural in a press conference in Rome on Wednesday.

Prime Minister Giorgia Meloni’s government approved the budget for 2025 late Tuesday. The package has a gross overall value of €30 billion ($33 billion), according to a government statement.

The measures need to be submitted to the European Union and ...