Italian premier presents economic measures on energy, family

ROME (AP) — Italian Premier Giorgia Meloni presented the government’s first economic policy initiatives Tuesday, announcing 21 billion euros in budget tweaks that would be used to help industry and families cope with soaring energy prices, as well as measures to incentivize couples to have more children and businesses to hire more women.

The budget modifications show a clear political shift, doing away with a basic income and a decade-old pension reform that Meloni and her right-wing allies have long attacked while coming up with new measures to promote Italy’s perennially low birth rate.

Most of the money was earmarked to maintain campaign promises to offer further help to families and businesses coping with a surge in energy costs, and was on top of more than 60 billion euros already pledged by the previous government of Mario Draghi.

Meloni said the “courageous" and clearly political choices focused on two main priorities: helping Italian industry grow despite the energy crisis sparked by Russia's invasion of Ukraine, and socio-economic initiatives for low-income families.

The bulk of the adjustment went to tax credits and other measures to help businesses keep producing while also incentivizing them to hire women and young workers. Italy has one of the lowest rates of women in the workplace in the OECD.

Other measures also signaled a shift from previous governments, including a phase-out by the end of next year of the so-called “citizens’ wage,” the crowning achievement of the 5-Star Movement, which was in power from 2018-2021. Meloni had vowed to abolish the expanded welfare program altogether during the campaign, arguing that it encouraged people to stay on welfare when they could work and was abused by fraudsters.

The changes announced Tuesday would knock...