Italy's Lower House of Parliament has approved the government's request for extra borrowing to finance labor cost cuts proposed by Giorgia Meloni. The move comes after the government suffered a setback on Thursday when it failed to secure enough votes for the same request, highlighting the fragility of Meloni's right-wing coalition government. The defeat was largely self-inflicted, as too few coalition lawmakers were present to pass the bill, and Meloni herself was out of the country on a state visit to the UK.
However, a cabinet meeting was held on Thursday evening to submit a similar request for borrowing, which was approved by a large majority in the Lower House on Friday. The request must now be approved by the Senate, where a vote is scheduled for later in the day.
The extra borrowing authorized by parliament will enable Meloni to implement her promise to introduce labor cost cuts at a cabinet meeting on May 1st. This move is seen as controversial, but Meloni's government argues that it is necessary to boost the country's economic growth and create jobs.
The approval of the borrowing request is a significant victory for Meloni's coalition government, which has faced criticism for its handling of the COVID-19 pandemic and economic recovery efforts. The government's ability to implement its proposed reforms in the future remains uncertain, but the approval of the borrowing request is a positive step forward for Meloni's agenda.