Giancarlo Giorgetti, Italy's Minister of Economy and a prominent member of the League party, has expressed caution regarding the European Union's initiative to significantly bolster its defense capabilities.

This initiative, announced by European Commission President Ursula von der Leyen, involves an investment of €800 billion across member states.

Giorgetti underscored the need for a measured response to this call for rearmament, stating, "We must understand how to respond in the most appropriate way possible.

However, I believe there should be no haste, especially when recalling the earlier execution of the National Recovery and Resilience Plan (PNRR), which initially included projects that lacked coherence and strategic impact."

His comments came during a video address to an economic conference hosted by the League in Montecitorio, where he further articulated the necessity of prudent debt management.

"When we incur debt, especially as we are restricted from doing so in morally significant areas, it must be done with forethought.

I express this with absolute conviction and challenge anyone to disagree with me," Giorgetti stated.

Just prior to his remarks on defense spending, Giorgetti approved the implementation decree for a contributory exemption designed to incentivize the hiring of individuals under 35 who have never held permanent employment.

This measure, part of the Cohesion Decree, provides private employers with a tax exemption for up to 24 months, allowing them to receive up to €500 per month per employee in social security contributions when hiring non-managerial staff on permanent contracts or converting temporary contracts into stable positions.

The maximum exemption is increased to €650 per month when the employment occurs in specific regions, including Abruzzo, Molise, Campania, Basilicata, Sicily, Puglia, Calabria, and Sardinia.

Employers must have not laid off employees for just cause or engaged in collective layoffs in the six months preceding the new hire to qualify.

This tax exemption cannot be combined with other contributory reductions but is compatible with the large deduction for new hires that was introduced in the income tax reform (Article 4 of Legislative Decree No. 216/2023) and extended until 2027. A budget of €1.429 billion has been allocated under the National Program for Youth, Women, and Employment 2021-2027.

The effectiveness of these measures is subject to approval by the European Commission, as mandated by Article 108(3) of the Treaty on the Functioning of the European Union and further stipulated in Article 22(11) of the Cohesion Decree.

The Commission's approval was communicated on January 31. The decree is now under review by the relevant oversight bodies.