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Home»News»Europe
Europe

Milleproroghe decree: jump the extension of the composition with creditors, changes on scrapping

Sam AllcockBy Sam AllcockFebruary 12, 20254 Mins Read
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Agreement Reached on Milleproroghe Decree in Senate’s Constitutional Affairs Committee

In a significant development, an agreement was reached last night in the Constitutional Affairs Committee of the Senate on the Milleproroghe decree. This agreement comes after intense negotiations between the government and the majority, culminating in the decision to withdraw the amendment proposed by the speakers on the scrapping of folders and the extension of the deadline to adhere to the biennial agreement. The compromise reached specifies that the scrapping will only apply to those who have already made requests, while the two-month extension to adhere to the concordat has been removed. This move marks the end of a tiring diplomatic effort, particularly challenging due to the divergent positions within the majority itself.

Diverse Stances Within the Majority

Despite the agreement, there are still varying stances within the majority. Foreign Minister Antonio Tajani, for instance, emphasized that the "priority" remains the reduction of IRPEF (personal income tax) from 35% to 33% and the expansion of the tax threshold to 60,000 euros. This highlights the complex nature of the negotiations, where multiple interests and priorities must be balanced. Meanwhile, the issue of scrapping continues to be a topic of discussion. Matteo Salvini, leader of the League, reiterated his party’s readiness to formalize a detailed proposal on fiscal peace, which will be shared with allies as part of their electoral program. This indicates a continued commitment to addressing tax-related issues, even as the majority works to finalize the Milleproroghe decree.

Opposition’s Hard Line Stance

The opposition, particularly the Democratic Party (Pd), has maintained a firm stance against the Milleproroghe. According to Andrea Giorgis of the Pd, the decree represents a "tax management" that "revises terms and undermines the cornerstones of the tax system." The Democratic Party has proposed alternative measures, such as addressing waiting lists, medical personal deficiency, school abandonment, educational poverty, and disability. However, these proposals have been rejected by the majority. The Pd criticizes the majority for advancing only proposals that "continue to wink at those who do not fulfill tax contribution duties." This highlights the significant divide between the government and the opposition on fiscal and social policies.

The Scale of Unpaid Taxes

The issue of unpaid taxes looms large in this debate. According to calculations by the financial newspaper Il Sole 24 Ore, the total amount of uncollected disputes by the end of 2024 is projected to reach 1.275 trillion euros. This staggering figure translates to 21,611 euros for each Italian, including infants. The regions with the highest levels of uncollected taxes are Lazio, Campania, and Lombardy. This financial burden underscores the urgency of addressing tax compliance and the effectiveness of the tax system, issues that are at the heart of the Milleproroghe decree and the broader fiscal debate.

Moving Forward with the Milleproroghe Decree

Today, the votes on the provision are expected to finalize the Milleproroghe decree, with the aim of "closing" the matter, as stated by the committee president, Balboni. The pressure is on to meet the looming deadline of February 25, by which the decree must be approved by both chambers of the parliament. The agreement reached in the committee is a step towards achieving this goal, but it also highlights the complexities and challenges involved in navigating the legislative process, especially in a politically divided environment.

Conclusion

The agreement reached on the Milleproroghe decree in the Senate’s Constitutional Affairs Committee represents a significant milestone in the ongoing fiscal debate. While it addresses some of the key issues, it also underscores the diverse and often conflicting priorities within the majority and the opposition. The pressure to meet the February 25 deadline adds urgency to the process. As the debate continues, the focus remains on balancing tax management, fiscal responsibility, and the broader social and economic well-being of the country.

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