Italy blames financial woes in family benefits dispute with Brussels

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Italian Prime Minister Giorgia Meloni slammed the European Commission's infringement procedure against Italy as "surreal," setting the stage for another war of words between Brussels and Rome.

Last week, the European Commission announced it is taking legal action against Italy, accusing it of discriminating against EU nationals who reside in the country by making them ineligible for family benefits.

Under a law that came into effect in 2022, workers who have not lived in Italy for at least two years or whose children are not registered as residents are excluded from these benefits.

However, Italian lawmakers are rejecting the accusations from Brussels, questioning its authority over the issue.

"This is something that almost falls outside the union’s competencies," Forza Italia MEP Flavio Tosi told Euronews.

"Every country has to come to terms with available resources. Italy is among the countries with the highest debt in the EU, and we can’t compare ourselves to France, Germany, or other EU founding members that can afford to spend more or incur more debt”.

The Italian government has allocated an additional €3 billion to support its family benefits system, known as the "assegno unico", or universal allowance.

Meloni has emphasised that Italy cannot afford to invest more than what has already been allocated and that the measure is key in her government's efforts to address the country's declining birth rate.

Despite Italy’s response to the Commission’s initial letter of formal notice last year and a follow-up opinion, the EU maintains that the country’s reply failed to address its concerns.

The case has now been sent to the Court of Justice of the EU. The European Commission insists that one of the fundamental principles of the EU is that all of its citizens are treated equally across all member states, meaning that Italy cannot create different policies for EU citizens and Italians on any matter of rights and privileges.