Italy’s premier rejects criticism concerning controversial budget

ROME

Italian Prime Minister Giorgia Meloni rejected widespread criticism Tuesday about her government’s first budget law, which according to some observers focuses more on promoting the underground economy rather than boosting the real one.

Italy’s central bank blasted plans Monday to promote cash instead of digital payments -- a move seen as risking boosting the “black economy” while denting efforts to fight tax evasion.

Meloni said the Bank of Italy’s criticism was not “substantial” and defended the scope of the budget;

“The news for the government is that there was no substantial criticism from the Bank of Italy,” Meloni told reporters on the sidelines of a EU-Western Balkans summit in Albania. “It means that, from my point of view, it is a well-done, serious budget that delivers an important message … I think we did a good job.”

The draft budget, which needs to be approved by parliament by the end of the year, includes a norm that aims to raise the legal limit for cash transactions to €5,000 ($5,182) from the current €1,000 ($1,036). Another controversial measure allows shop owners to refuse digital payments for transactions valued at less than €60 ($62.18).

Several critics, however, noted that the measures seemed to favor the rich who try to avoid fiscal duties, instead of helping struggling families and firms that are coping with skyrocketing inflation and energy costs.

Meloni has repeatedly rejected those observations, saying that the wider use of cash does not risk boosting Italy’s vast black economy.

However, the Italian premier, who is still enjoying a high level of popularity after winning elections in September with sound support, has acknowledged that her plan to exempt sellers from accepting small digital payments may face resistance from the EU, which has also raised doubts about the measures.

In a recent video on social media, Meloni said the €60 threshold on digital payments could still be changed, suggesting that she might step back from the issue amid growing criticism.

ROME

Italy’s central bank blasted plans Monday to promote cash instead of digital payments -- a move seen as risking boosting the “black economy” while denting efforts to fight tax evasion.

Meloni said the Bank of Italy’s criticism was not “substantial” and defended the scope of the budget;

Meloni has repeatedly rejected those observations, saying that the wider use of cash does not risk boosting Italy’s vast black economy.

In a recent video on social media, Meloni said the €60 threshold on digital payments could still be changed, suggesting that she might step back from the issue amid growing criticism.