Analysis
Salvini admits there’s no money for the Housing Plan
But the Housing Plan is insufficient in substance as well, not just in funding. A real plan doesn’t actually exist, only a vaguely worded announcement about providing “price-controlled homes” for young couples and families.
Infrastructure Minister Matteo Salvini himself has made it clear that his government’s Housing Plan lacks both resources and ideas. Announced with great fanfare in August by Prime Minister Meloni, the plan consists of a mere €660 million set out in the budget law for the year 2027.
The Lega leader admitted these funds are only enough for “one pilot project in each region.” Moreover, the administration has yet to prepare the guidelines for these projects, which were supposed to be done by summer. “I need some of the money to be brought forward to 2026,” said Salvini – tasked with managing the plan – in Milan on Monday. Unfortunately for him, his ministry has suffered the deepest cuts in the latest budget law, courtesy of his Lega colleague, Economy Minister Giorgetti: €1.3 billion slashed over the next three years, including €520 million in 2026 alone.
No housing plan, no funding for subways – but at least the money for the Messina Strait Bridge (costing around €13.5 billion) remains untouched. Salvini brought out a well-worn rhetorical card: “I will ask that a portion of the funds should come from the banks,” which they should give “with joy and enthusiasm,” given that “in the last three years they have made €112 billion in profits.” He clarified that “he has no animosity” against them; indeed, he employs this kind of populist appeal mainly to garner applause, while inadvertently admitting that the public coffers are shockingly empty, even for a basic need like housing.
But the Housing Plan is insufficient in substance as well, not just in funding. A real plan doesn’t actually exist, only a vaguely worded announcement about providing “price-controlled homes” for young couples and families. Those words, first uttered by the prime minister in Rimini and which she repeated on Monday like a broken record, have never been followed by the required implementing decree, which was due by June 30, 2025. Ever since the last budget law allocated the €660 million, Salvini and Meloni have talked endlessly about the Housing Plan, without ever deciding on its specifics. Something was expected in the current budget law, but there’s nothing there.
Minister Giorgetti has said the plan will be financed through the Social Climate Fund, but he too failed to provide details. What is certain is that the government does not intend to resolve the housing emergency by promoting rent controls or even by incentivizing the use of some of the 9.6 million vacant homes (27% of Italy’s housing stock, according to ISTAT). The administration’s idea seems solely focused on building more and consuming more land, funneling money to construction companies. “We are working on how to build,” Salvini said on Monday: he intends to bring changes to “the Consolidated Building Act, which will lead to enabling legislation concerning homes and businesses. We want an open vision that also involves foreign investors, not only in public works, but also in real estate.”
The most urgent front, however, is public housing, where Italy lags far behind the rest of Europe: only 3.8% of families live in public housing, compared to the European average of 15% and highs of 24% in Austria and 29% in the Netherlands. But instead of talking about social housing, the minister preferred to invoke public-private partnerships. The government's approach favors ownership over renting, despite this having a high generational cost and encouraging rent-seeking. When it comes to rent support – which is far more relevant to younger generations than home purchase bonuses – the Meloni government has taken steps backwards: last year, it eliminated funding for the National Fund for Rental Housing Support, to which the previous Draghi government had allocated €330 million. The fund for preventing eviction due to non-culpable arrears was also cancelled.
According to the Italian Public Accounts Observatory at the Catholic University, building 50,000 homes at controlled prices would cost €12.5 billion – a figure “just below the estimated cost for the Messina Strait bridge.” But while its support for the bridge project remains unshakable, the government is offering only empty announcements about the Housing Plan. Meanwhile, 60% of Italians between 30 and 40 cannot afford their first home. Perhaps Salvini’s idea is that they should sleep under the bridge.
Originally published at https://ilmanifesto.it/il-piano-casa-non-ce-niente-fondi-salvini-li-chiede-alle-banche on 2025-10-28