Senior members of Premier Giuseppe Conte's government agreed to invest some three billion euros in cuts to the labour-tax wedge in 2020, sources said Monday after a high-level meeting overnight on the new budget bill. The executive had previously planned to allocate around two billion to reducing the tax wedge.
At the meeting, it was also agreed to launch a fund for the family, a move that could pave the wave for a new benefit for all households that have children. The cabinet is expected to approve the budget bill later on Monday or early on Tuesday. One issue that still divides the government is the proposal by ex-premier Matteo Renzi, the leader of the newly founded, centrist Italia Viva (IV) party, to scrap the 'quota 100' pension reform that makes it possible for some people to retire early.
The reform was passed by Conte's first government, which was based on alliance between the 5-Star Movement (M5S) and the League and collapsed when League leader Matteo Salvini withdraw his support for it in August.
The M5S, which is now in government for the 'Conte Two' executive with IV and the centre-left Democratic Party (PD), is said to be against abolishing it.
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