In March 1998, the Italian Government issued a decree setting out new rules on access to social welfare benefits, following lengthy debate with the social partners.
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In March 1998, the Italian Government issued a decree setting out new rules on access to social welfare benefits, following lengthy debate with the social partners.
The Italian Government, after a long period of consultation with the social partners, has decided to modify the rules on access to social welfare benefits. On 4 March 1998, it approved a decree setting out the new rules.
Up until now, the majority of social welfare benefits in Italy have had a universal character but the latest decisions mean that the benefits will henceforth be income related. All citizens seeking entitlement to benefits will have to calculate their family's earned income and submit a self-declaration to the administration responsible for administering the benefit sought. The declaration must contain all the information necessary to calculate the claimant's "economic situation indicator" (Indicatore della situazione economica, Ise), made up of personal income, real estate property and personal property.
Real estate property will be assessed as the value of the real estate, minus an allowance of ITL 50 million and any remaining debt on a mortgage taken out on the estate. Personal property, for which there is again an allowance of ITL 50 million, includes bank and post office deposit accounts, interest-bearing deposits, government bonds, shares and unlisted securities.
The self-declaration will authorise the administration concerned to verify the truthfulness of the declaration and, if necessary, to check the applicant's personal bank account. Administrations will be authorised to make some verifications by themselves or through a special public service, and they will also be able to use the information contained in the database of the Finance Ministry.
The decree was issued just after a long period of heated debates between the Government and social partners. The most critical aspect of the consultation process carried out by the Government concerned a proposed distinction, in defining the Ise, between employees and self-employed workers. This distinction was omitted from the final version of the decree, thus satisfying representatives of the self-employed, which heavily criticised the first draft. The Cgil, Cisl and Uil trade union confederations are less satisfied with the decree, because they fear that it could penalise the weakest occupational categories and especially retired workers.
Eurofound recommends citing this publication in the following way.
Eurofound (1998), New rules on access to social benefits, article.
