Italy's right-wing government amended labor rights and subsidies, cutting down on anti-poverty subsidies introduced in 2019, saying they cost too much.
The new program was announced on May 1, which is International Workers day. It coincided with nationwide demonstrations marking the day.
The subsidies, dubbed "citizens' income" would be replaced by "inclusion checks" which largely exclude youth citizens.
Prime Minister Giorgia Meloni's government said last year's subsidies were too costly, at around €8 billion ($8.8 billion), and that they discourage otherwise able-bodied citizens, mostly youths, from seeking employment.
Newly introduced amendments also facilitate short-term contracts between 12 and 24 months, in a move many fear would take a toll on workers' rights.
What does the new package entail?
The new "inclusion cheques" will be limited to households with minors, seniors or disabled people. They will amount to a little over €500 a month, for a maximum of 30 months, the Reuters news agency reported, citing a draft it had accessed.
Meanwhile, subsidies for underprivileged aged 15-59 would slim down to €350 a month, over a maximum duration of 12 months and subject to participation in job training schemes, Reuters said.
Under the current system, families receive around €550 monthly.
The inclusion checks will begin in January 2024 and will cost around €5.4 billion euros annually.
"We are reforming the citizens' income to make a distinction between those who are able to work and those who aren't," Prime Minister Meloni, who heads Italy's most right wing government since World War II, said in a statement.
Labor Minister Marina Calderone also defended the reforms. She said the government sought to support "those who need to work but also those who want to work."
Critics slam new program as 'provocation'
Giuseppe Conte, former prime minister of the Five Star Movement which had introduced the more generous "citizens' income" program, blasted the changes.
"A serious government does not meet on May 1 to condemn young people to a life of precariousness, destroying their dream of having a home or children," he was quoted by the French AFP news agency as saying.
M5S supporters say the old scheme provided help to millions of low-income households, especially in impoverished southern regions.
Former parliament speaker Roberto Fico meanwhile described the move as a "provocation."
Maurizio Landini, who chairs Italy's main CGIL union, said that approving the measures on the International Workers' Day was an "act of arrogance."
Nearly a quarter (23.1%) of Italy's youth, aged 15-29, are not in education, employment or training. The percentage is the highest in the European Union, where the average is 13.1%, as per Eurostat data from 2021.
