Sicily: government approves €1.7 billion budget package

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Translated automatically by AI from the Italian original.

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The Schifani government has approved the regional Stability Bill for the 2027–2029 three-year period, a package worth a total of €1.7 billion. It includes numerous measures to support Sicily’s economic growth, strengthen the productive system and household purchasing power, encourage young people to stay on the island and improve services for citizens.

“With this package we continue on the path of growth and development for Sicily, making important resources available to provide concrete answers to the needs of citizens and the productive world,” said the President of the Sicilian Region, Renato Schifani. “The public finance consolidation achieved by our government now allows us to plan new interventions, with particular attention to young people, work, families and businesses. We want to build a Sicily capable of offering opportunities, valuing its own talents and consolidating the economic results achieved in recent years.”

“We want to make the right to stay in Sicily a reality,” added the regional minister responsible for the Economy, Alessandro Dagnino, “by continuing to create the economic conditions that allow young people to build their future on the island. That is why we have chosen to act simultaneously on merit recognition, the quality of work and business productivity. We are introducing financial support for the most deserving graduates who choose to remain in Sicily and, for the first time, a regional incentive for productivity bonuses, with a contribution that reaches 60% for workers under 35. This is a measure that ties business growth to wage increases, so that the benefits of economic development translate into better opportunities for workers.” 

Key measures at a glance

Among the main new features of the package is the set of interventions for the right to stay, aimed at countering youth emigration and making Sicily a more attractive place. The “Giovani talenti Sicilia” scheme provides a three-year grant of €30,000 for the most deserving graduates from Sicilian universities, on condition they remain on the island. The measure has been allocated €10 million a year for the three-year period. Another €10 million a year is earmarked for reducing interest on loans taken out by universities to refurbish student spaces.

On the employment front, a regional contribution will cover 50% of the cost of productivity bonuses recognised by companies for their employees, rising to 60% for workers under 35. The measure has a budget of €10 million a year for the three-year period.

There are also significant measures for the productive system. These include €30 million to reduce interest on loans for micro, small and medium-sized enterprises (resources that will be used to move down the existing IRFIS ranking list and to fund a new call), €12 million to cut credit access costs in the retail, craft and cooperative sectors, and €10 million for a new energy bonus for businesses. A further €10 million is allocated to support olive growing.

The package confirms the commitment to the most vulnerable sections of the population. It allocates €20 million to the solidarity contribution scheme and €10 million to anti-poverty and social exclusion measures. Resources are also provided for anti-violence centres, the baby bonus and the Liberi di scegliere programme.

For schools, a €25 million revolving fund is being set up to advance the resources needed for energy efficiency work on school buildings. Another €25 million will supplement the funds available for upgrading sports facilities, adding to the €40 million already earmarked and for which the call has already been published.

On the health front, the bill provides for the establishment of Azienda Zero, aimed at rationalising procurement and improving the efficiency of the regional health system. The executive is also allocating €63 million to increase the region’s contribution to the health fund. These resources are in addition to those already allocated to cover the health deficit. Special attention is being given to paediatric conditions: €10 million is earmarked for travel and accommodation expenses for health reasons for low-income families. 

The package also strengthens support for local authorities, with a €15 million increase in the fund for ordinary transfers to municipalities, bringing it to €400 million, up €35 million from the initial allocation of €365 million. The fund for investment in local authorities is increased by €5 million, bringing it to €120 million.

For the forestry sector, €76 million is allocated. Additional resources are provided for contractual adjustments (€10 million) and for the supplementary contract (€11 million). The increase in working days approved last year is also confirmed. This involves 28 extra days for each contingent. To step up fire-fighting activities by activating a new contingent of 1,000 people, €10 million is allocated.

The package also implements the commitment made by the Schifani government to workers in the former Pip, Keller and Pumex basins. With an allocation of €35 million, it finances the conversion to full-time, 36-hour-a-week employment contracts for the staff concerned, starting on 1 April 2027. This intervention completes the process begun to overcome long-term precarious employment and recognises the role these workers have played in delivering the regional administration’s services. At the same time, the executive maintains the allocation for precarious workers in local authorities.

Many of the initiatives launched in 2026 that the regional executive has decided to continue in 2027 include decontribuzione Sicilia (the recently enhanced employment incentives under bill 1200) and the South Working scheme. The allocation for the high cost of flights is also confirmed, with a total of €37 million.

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