Italy’s Meloni backs housing access plan as election nears

[ROME] Giorgia Meloni’s government presented a series of measures aimed at expanding housing access for Italians, part of a push to address cost-of-living concerns as the prime minister prepares for a general election in 2027. 

“If all goes to plan, our objective is to make a total of more than 100,000 homes available in the 10 years,” Meloni told reporters in Rome on Thursday (Apr 30) after a cabinet meeting. “The message we’re trying to get across is that we’re trying to solve problems.”

The plan, which Meloni said was worth at least 1.7 billion euros (S$2.5 billion) and includes the refurbishment of existing social housing and steps to halve notary fees, is part of Meloni’s attempt to boost her political standing and alleviate high prices making life unaffordable for many Italians. 

In addition to housing, soaring energy costs are constraining budgets. Meloni’s government on Thursday extended a fuel tax cut for a further three weeks, she said, with a focus on diesel fuels.

The housing plans foresees a mix of public-private partnerships and bureaucratic incentives alongside a push for homebuilders to construct more affordable dwellings. Meloni first hinted at the plan last year, and said Thursday it could expand to include at least another 4.8 billion euros in funding.  

The premier has been on the back foot since losing a referendum on judicial reform last month, her first nationwide defeat since coming to power in late 2022. That prompted the exit of one minister, changes at the justice ministry, and an overhaul of top executives at key state-backed companies.

More recently, Meloni’s government has been roiled by a scandal surrounding the pardon of Nicole Minetti, a former associate of Silvio Berlusconi, the long-serving Italian prime minister who died in 2023. Press reports alleged Minetti misrepresented her circumstances in a bid for clemency, which raised questions about Meloni’s justice minister. 

Minetti denies any wrongdoing, and Meloni has ruled out the departure of her justice minister for the time being. Asked about the issue again on Thursday, Meloni said she had already answered on the matter. 

Additionally, Meloni’s economic room to maneuver is narrowing just as external shocks mount. Italy has already cut its 2026 growth forecast as the US-Israeli war on Iran keeps energy costs high and saps demand. Making matters worse, Italy’s deficit continues to violate European Union budget rules.

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In response to the war-related price hikes, Meloni and her government have said the bloc should ease fiscal rules, though EU officials don’t appear eager to heed those calls. BLOOMBERG