After having denied the reality of the economic crisis for months, in May 2010 the Italian government announced a budget bill of €24 billion in cuts and savings in public expenditure. This law, highly criticized by unions, should come into force in early December. Other laws regarding labour market reforms complete the pattern of measures.
General information and figures
After having denied the reality of the economic crisis for months, in May 2010 the Italian government announced a budget bill of €24 billion in cuts and savings in public expenditure. This law, highly criticized by unions, should come into force in early December. Other laws regarding labour market reforms complete the pattern of measures.
Unemployment rate (June 2010) :8.3%
GDP (bn euro – 2010) :1553.35
General Government debt (2009 - % GDP):116
Public deficit (2009 - % GDP): 5.3
Source: Eurostat
Public Employees
Between 2011-2013 the total remuneration of public employees may not exceed that of 2010. This represents the non-renewal of national collective agreements which validity has been consequently declared de facto four-year (2010-2013).
The contract renewals for the period 2008-2009 can’t provide increases of more than 3.2%. The provision has a retroactive effect, even for collective agreements that have already been signed and certified by the Court of Auditors and for which the resources are already allocated.
Freezing (without subsequent recovery) of seniority increments for teaching and non teaching staff in schools. This measure also affects pension contributions and severance pay.
Non-renewal of thousands of fixed-term contracts in education.
Pay cuts for civil servants from 1 January 2011 to 31 December 2013 (managers, professionals, doctors, etc..) of 5% for incomes above €90,000 and 10% for the portion in excess of €150,000). Unlike the freezing of seniority increments for the school staff, these cuts are temporary and have no effect on pensionable earnings.
Freezing of seniority and salary increments and automatic mechanisms for career progression for judges, lawyers, academics for the period 2011/2013. The career progression stays but has effect only from a legal point of view. In this case, unlike the teaching and nonteaching staff, it is foreseen a subsequent recovery.
A 50% reduction of resources for fixed-term and precarious jobs: a measure which will inevitably penalize public services.
Recruitment embargo by blocking turn-over in 2011-2012, for 2013 at a rate of 20% and in 2014 (at 50%): this has obvious repercussions not only for the Administration but also for the stabilization of temporary workers.
Cuts in social benefits
A 70% budget decrease for family policy (from €185m to €52m) and a 66% decrease in the youth policy budget (from €94.1m to €33m)
The social policy fund reserved for regions has been abolished (it was 187m euro).
Pension reforms
From 1 Jan 2012 the retirement age for female public employees will be raised to 65,
From1 January 2015, further increases in the retirement age are foreseen.
A further increase in the retirement age is planned from the 1st January 2019 and then again every three years. The retirement age is in this way linked to life expectancy and is potentially unlimited, so young people will lose forever any certainty about their pension rights.
The regulations on retirement have been reformed in such a way that certain categories of workers will be penalized.
Cuts in public services, transfers and public investments
Cuts announced in Ministries budget of 10%
Cut of €30million contribution per year for the period 2011-2013 to the “patronati” (trade unions’ institutes that deal with social security for the protection of workers and retired people).
As a consequence of the non-renewal of some collective agreements, the budget of the National Health Service is reduced by €418 million in 2011 and by €1132 million in 2012.
For the year 2010 the budget of the National Health Service was increased only by €250 million instead of €550 million as previously foreseen.
A reduction of €5 million to resources for sustainable development and environment protection.
Collective bargaining and labour reform
The individual employment contract may pass through a “certification” process which could potentially decrease the rules and the protection included in the national collective agreements.
With the introduction of specific clauses in the individual contract, it will be possible to refer possible future complains to an industrial arbitror instead of the labour court. The arbitror decisions cannot be appealed and he will be able to take the decision without taking into consideration laws and collective agreements.
It will be possible to start working as an apprentice at the age of 15.
The Minister of Employment has proposed replacing the “workers’ statute” (a 1970 law which guarantees the fundamental rights of workers) with a “works statute”, with the objective of decreasing workers’ rights and protections.
Tax changes
A Road toll has been introduced in some highway junctions.