Recently, a new statutory measure was introduced in Italy: the minimum insertion income (reddito minimo di inserimento - Decree-Law 237, 18.6.1998, published in the Official Gazette no. 167, 20.7.1998). This instrument encompasses measures "whose aim is to facilitate the social integration and economic independence of recipients (individuals and families) by means of personalised programmes and income supplements" (Article 1 (2)). This pilot project is "a measure against poverty and social exclusion by improving the economic and social conditions of persons threatened with such marginalisation" (Article 1 (1)).
The experiment, which in its first phase will be introduced in a small number of local authorities, is limited to two years and will be concluded on 31 December 2000 at the latest. Within 30 days of the above-mentioned Decree-Law coming into force, the local authorities will be selected on the basis of criteria that include the incidence of poverty and its various economic, demographic and social dimensions, and the necessity of ensuring a balanced distribution of participants in the pilot project. Among other things, the local authorities must:
- select the persons responsible for the programme of social integration.
The Social Policy Fund will bear the costs of these initiatives up to the ceiling set by the financial framework available for this purpose; the local authorities will be called upon to provide 10% of the overall costs "where possible in the light of their resources and the level of the local authority budget". The distribution of the available financial resources will be determined by a decree issued by the Minister for Social Solidarity. The administrative costs for organising the service, including the costs of realising the programme for social integration, will be borne by the local authorities.
In order to be entitled to the minimum insertion income, "recipients must either be without any income or drawing an income, taking into account all forms of earnings, [...] that does not exceed the official poverty line of ITL 500,000 for a single person" (Article 6 (2)). In the case of families, the poverty line is determined on the basis of an equivalence scale appended to the Decree-Law. The supplement is granted for up to one year and can be renewed if the objective conditions justifying the grants continue to exist.
The income situation of the applicant is determined on the basis of the sum of the incomes of the members of the family or those cohabiting with him/her and of those persons considered to be dependants as defined for the purposes of income tax (IRPEF).
If the applicants include unemployed persons capable of work and of working age, they are required to be willing to take up paid employment and participate in training courses. Availability for work is documented by making a personal appearance at the placement office.
As far as the income supplement is concerned, the level of the "supplementary income grant is equal to the difference between the monthly limit of ITL 500,000 for 1998, ITL 510,000 for 1999 and ITL 520,000 for 2000 and actual monthly income" (Article 8), as calculated on the basis of the elements indicated above.
The income supplement grant is paid as of the day on which the application is received. In fiscal terms, it is comparable to the "social pension" (Article 26 of Law 153, 30.4.1969).
The above-mentioned Decree-Law introducing the minimum insertion income also makes provisions for the realisation of social integration programmes which are to be prepared "in conjunction with envisaged measures of active labour market policy" (Article 9). These programmes aim "to re-attain, promote and develop personal capabilities and rebuild social networks; for minors, the programme focuses on finishing compulsory schooling and subsequently on vocational training" (Article 9 (2)).
The recipients of minimum integration income are obliged, among other things, to respect the obligations associated with acceptance of the social integration programmes.
In verifying the veracity of the information given by the applicant on his/her economic and family situation, the local authority may have recourse to data provided by care and welfare services and to Finance Ministry data. The local authority may ask such institutions to make additional enquiries.
The Ministry for Social Solidarity has given an ad hoc organisation a special commission to evaluate the impact of this pilot project; the organisation was selected following an invitation to tender.
The Commission to Investigate Poverty and Exclusion, set up by the President of the Council of Ministers, will express its views on the impact of this pilot project.
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