• 1 According to the Paritätischer Wohlfahrtsverband professional association, which brings together th (...)
• 2 Art. 1, §255, of Law no. 145 of 30 December 2018 (Finance Law of 2019).
• 3 Data provided by the French Family Benefits Fund: www.caf.fr
• 4 Data from the Federal Employment Agency, as reported by « Zeit Online »: https://www.zeit.de/wirtsc (...)
• 5 Article 1, § 258 of Law no. 145 of 30 December 2018 (2019 Finance Law) provides that «in the Citize (...)

3Largely inspired by the German Arbeitslosengeld II model (also known as « Hartz IV »), established in 2005, and recently criticised for low rates of mobility among outgoing beneficiaries1, the RDC is designed to serve as an active measure of labour policy and of efforts to reduce poverty, inequalities and social exclusion. It primarily consists of a subsidy for persons whose income is less than €500, plus an allowance for housing assistance. The budget allocated for the RDC for 2019 was €7.1 billion2, i.e. a significantly smaller investment than that made for similar measures in France (€10.62 billion)3 or Germany (€21 billion)4, especially since, due to an express legislative provision, a considerable part of the budget will not be used to finance this subsidy; instead it will go to support the employment agencies and ANPAL Servizi SpA, the representative body of the Agenzia Nazionale per le Politiche Attive del Lavoro (National Agency for Active Employment Policies), which will coordinate the activities planned by the Patto per il Lavoro (Employment Pact)5.

• 6 J. J. Klos, « Public Assistance, Family Allowance, or the Negative Income Tax », Nebraska Journal o (...)

7Beyond the occasionally passionate scientific debate that characterised American thinking on the subject in the 1960s6, the notion of unconditional income for every citizen never became very widespread in practice. The only basic income model conceptually comparable to an authentic reddito di cittadinanza would be the case of Alaska (USA), where the Alaska Permanent Fund - a public fund set up to manage oil extraction profits - has provided a monetary dividend to all Alaskan citizens since 1982. The specific characteristics of this fund provide for a periodic, variable stipend, designed not so much to guarantee a minimum income as to compensate for the exploitation of natural resources. The size of the sum provided, which in 2017 came to around $1,100 per person per year, thus distances the social assistance provided from the core concept of a basic benefit sufficient to secure its recipients’ income.

• 7 C. Del Bo, « Il reddito di cittadinanza: uno sguardo diacronico sul dibattito e qualche considerazi (...)

8The measure ultimately introduced in Italy was thus configured as a kind of social inclusion income, a payment of public funds to persons in a given income and asset situation who have agreed to start working7. The reddito di cittadinanza, introduced in 2019, was not the country’s first poverty-reduction measure to be provided contingent upon the recipient’s economic situation. Indeed, Law no. 33, of 15 March 2017, and Decree-Law no. 147, of 15 September 2017, had already introduced the Reddito di Inclusione (REI), and this in turn was a replacement for the Sostegno di Inclusione Attiva (SIA), provided by Decree-Law no. 5 of 9 February 2012 and implemented by Law no. 35 of 4 April 2012.

• 8 Interministerial decree of the Ministry of Labor and the Ministry of the Economy of 26 May 2016 (pu (...)
• 9 An acronym for Indicatore della Situazione Economica Equivalente (Equivalent Financial Position Ind (...)

10The SIA, which was an experiment first introduced in 2012 in twelve major Italian cities under the name Carta per l’inclusione, was intended exclusively for families with children in difficult circumstances. In 2016, it became a general poverty-reduction instrument, and was allocated a budget totalling €600 million8. The SIA provided for the payment of monthly allowances, varying from a minimum of €80 to a maximum of €400, depending on the number of persons in the beneficiary household, for a maximum of twelve months. To access the SIA, you had to be an Italian national or a foreigner residing in Italy for five years with resources of an ISEE value9 no greater than €3,000.

• 10 Estimates reported in the technical report of Legislative Decree 147/2017 and the 2018 budget bill (...)

11In 2017, the SIA was replaced by the REI. Its €2.1 billion budget then made it possible to increase the number of beneficiaries, the amount and the duration of the service. The subsidy was increased to €187.50 for a single person, and to €539.80 for a family of six. The system where benefit payments would be provided on a dedicated electronic payment card remained unchanged; this Carta REI could be used for purchases or cash withdrawals with a monthly limit. The duration was set at 18 months, and could be extended a further 12 months after a 6-month suspension. In order to increase the number of beneficiaries, the maximum ISEE value for each household was increased to €6,000, but two asset prerequisites were added: a fixed assets limit of €20,000, not including one’s primary residence, and a movable assets limit of €6,000. Beneficiary families were required to comply with personalised plans developed by the social services for their municipality of residence, including commitments to participate in training and/or job search activities, and to contact the office managing the inclusion plan on a monthly basis. In 2018, the potential beneficiary public of the REI was 700,000 families, for a total of around 2.5 million people10.

• 11 Statements of L. di Maio, Minister of Labor and Development, on 4 January 2019.

15The subsidy provided by the state through the Istituto Nazionale della Previdenza Sociale (INPS) consists of two cumulative elements: income benefits and housing benefits. The income benefits component is capped at €500 per month for a household consisting of one person, an amount that increases to €900 for couples with two children, and to €1,050 when the household includes other family members as well. The housing benefits component is capped at €280 per month for families renting a home, and at €150 per month for families who have taken out a loan to purchase a home. These subsidies are limited to eighteen months, renewable with a one-month suspension. Eligibility for the RDC is limited to Italian nationals or foreigners with residence permits who have lived in Italy for at least ten years, and consecutively for the last two. The increase of the minimum period of residence in Italy to qualify for the benefit, which as seen above went from 5 years for the REI to 10 years for the RDC, was clearly intended to limit the number of foreign beneficiaries; in January 2019 the Minister of Labour even suggested reserving the measure for Italian citizens only11.

• 12 Art. 2, § 1, item b), D.L. no. 4/2019.

16As for capital and income requirements, the household’s ISEE value must be less than €9,360, fixed assets excluding the primary residence of less than €30,000, and movable assets not exceeding €6,000, which may be increased to €10,000 depending on the number of family members or the presence of disabled persons12.

• 13 Art. 2, § 1 bis, D.L. 4/2019, introduced by law no. 26 of 29 March 2019.

17When the Decree was being converted in Parliament, it was clarified that for purposes of the RDC an applicant’s fixed assets could be located either in Italy or abroad, and that in order for their subsidy requests to be accepted, citizens of non-EU countries would have to present an appropriate certificate, prepared by the competent authority of the foreign State, translated into Italian, and notarised by the Italian consular authority13.

• 14 Art. 2, § 1, item c), D.L. no. 4/2019.
• 15 Art. 3, § 11, D.L. no. 4/2019, as amended by law no. 26 of 29 March 2019.

19The RDC furthermore cannot be paid to families owning certain assets classed as luxury goods, such as boats, pleasure crafts, vehicles registered in the last six months, motor vehicles with an engine capacity over 1600 cm³ or motorcycles with a cylinder capacity over 250 cm³ registered in the two past years14. Beneficiaries are also required to inform the INPS within fifteen days of any change in assets leading to a non-satisfaction of the minimum requirements. It was also clarified during the law’s conversion in parliament that non-satisfaction of the minimum requirements could occur even as a result of succession buyouts, donations, or receipt of sums in excess of the threshold provided by law15.

• 16 Art. 4, D.L. no. 4/2019.

20Payment of benefits is subject to the availability for employment of the adults making up the household, as well as to membership in a personalised program providing for employment searches and social inclusion. This program may include activities intended to help people finish school, take professional retraining courses, or perform community service, depending on the specific plan prepared for them at an interview conducted at an employment office, which must be held within thirty days of their acceptance of the subsidy16. The law also requires employment agencies to handle the preparation of the individual program, and requires applicants to sign an Employment Pact, consisting of a commitment to search job vacancy platforms and actively look for work, take training courses, do interviews, take selection tests, and accept at least one of three adequate job offers provided.

• 17 Art. 4, § 8, item b), number 5), D.L. no. 4/2019.
• 18 The « Navigators » are consultants selected and hired by ANPAL Servizi SpA, and assigned to the reg (...)

21The adequacy of the job offers selected by the employment agencies, defined by Decree-Law no. 4/2019, may vary depending on how long the beneficiary has been using the service and the number of offers they have refused: the first job offer extended to the beneficiary in the first twelve months is considered adequate if it is located within 100 kilometres of the applicant’s home (or 100 minutes by public transport); if it is a second offer this distance is extended to 200 kilometres; and if it is a third offer, a job offer at any distance is considered adequate. Likewise, after twelve months, a job offer anywhere within 250 kilometres is considered adequate. If the service is renewed after eighteen months, a job offer from anywhere in Italy is considered acceptable. If the third offer is not accepted, the subsidy will be lost17. In order to manage the active guidance and job search service, the Ministry of Labour has announced the hiring of 3000 consultants called « Navigators », coordinated by the Agenzia Nazionale per le Politiche Attive del Lavoro (ANPAL), to be put in charge of providing technical services to employment offices managed by regional government bodies18. These Employment Pacts may be replaced or accompanied by social inclusion pacts, covering the individual programs provided under the REI, which will be organised by public social services in the applicant’s municipality of residence.

• 19 Art. 3, § 15, D.L. no. 4/2019.

22Just like the REI and the SIA, benefits under the RDC are paid via an electronic payment card to which the amount due is credited. The RDC card allows you not only to make purchases but also to make cash withdrawals limited to €100 per month, and to make monthly transfers to a property owner or to a broker managing a loan used to purchase a property. The law expressly provides that the RDC card cannot be used for purposes of gambling for cash winnings or other rewards. There is also an obligation to spend the sums provided under the RDC, which would seem questionable or even detrimental in terms of the beneficiary’s private autonomy. The stipulation in fact provides for a double verification: a first monthly verification that deducts any unspent amounts from the following month’s benefit, up to a maximum of 20%, and a second biannual verification that deducts any unused amounts, with the exception of one monthly benefit amount19. The RDC must therefore be spent in full, and rather promptly.

• 20 Art. 4, § 15, D.L. no. 4/2019.

23Lastly, beneficiaries of the RDC are required to provide community service organised by the municipality of residence for a minimum of 8 hours per week, in cultural, social, artistic, environmental, or educational domains, or for the preservation of public property20.

• 21 Resolution on combating poverty in the European Community, 16 September 1988, A2-171/88, §12.

25The European Union has limited itself to coordinating national policies using recommendations, guidelines and other typical instruments of open coordination. Its 1988 resolution against poverty made an early mention of the « fundamental right of the individual to resources and advantages sufficient to live in human dignity », expressly citing the need to help provide for a « guaranteed minimum income to ensure that the poorest citizens can be integrated into society »21.

• 22 Charter of Fundamental Rights of the European Union, art. 34 § 3.

26The Charter of Fundamental Rights of the European Union recognised by the methods established in Community law and national legislation « the right to social and housing assistance so as to ensure a decent existence for all those who lack sufficient resources »22, with the objective of combating social exclusion and poverty. But it was not until the economic crisis of the end of the millennium that the issue of minimum income became central to the European political agenda once again.

• 23 2008/867/EC - Commission Recommendation of 3 October 2008 on the active inclusion of people exclude (...)

27Starting in October 2008, the European Parliament, in its Resolution no. 2008/203423, called upon Member States to promote active social inclusion policies in order to regulate « minimum income schemes, related benefits and social assistance which should be easily accessible » and devise a « strategic plan for active inclusion policies in order to lift people out of poverty and prevent social exclusion ».

• 24 European Parliament resolution of 19 January 2017 on a European pillar of social rights (2016/2095- (...)

29In January 2017, the European Parliament declared that « the EU must respond swiftly and visibly to increasing frustration and worry among many people about uncertain life prospects, unemployment, growing inequalities and lack of opportunities, in particular for young people », and adopted Resolution no. 2095, highlighting « the importance of adequate minimum income schemes for maintaining human dignity and combating poverty and social exclusion, as well as their role as a form of social investment in enabling people to participate in society, and to undertake training and/or look for work »24.

• 25 A. Somma, « Contrasto della povertà e politiche attive del lavoro: reddito di cittadinanza, reddito (...)

30Beyond this Community law approach, all European countries have in recent years adopted - or strengthened - instruments to combat poverty. By 2007, only three member countries had still not introduced any form of minimum income; these were Greece, Hungary, and Italy, which was the last EU member state to comply with the community guideline, introducing its minimum social inclusion income program with Legislative Decree no. 147 on 15 September 2017, which entered into force on 1 January of the following year25.

• 26 M. Borgetto et al., Les débats sur l’accès aux droits sociaux entre lutte contre les exclusions et (...)
• 27 Data provided by the Caisse Nationale des allocations familiales (National Family Benefits Fund): w (...)

31In France, the Revenu de Solidarité Active (RSA), launched on an experimental basis in 2005 and extended nationwide in 2009, is a subsidy intended to achieve three objectives: to contribute to the income of families with limited economic resources, to guarantee to all persons a minimum income that will continue to be added even if they begin working more as well, and to provide professional employment support aimed at facilitating permanent reintegration into the labour market26. The RSA, which is intended to add to low incomes as well, applies to a wider beneficiary public. Although calculating an applicant’s income levels to determine whether they qualify for the subsidy is still a complex matter involving a whole series of personalized coefficients, for a household composed of only one person this limit is set, for reference purposes, at €14,520 per year, compared to the €9,360 stipulated in the Italian law. Furthermore, in France, a beneficiary who refuses the second job offer presented will lose their entitlement to the subsidy, whereas in Italy, as mentioned above, they will lose their entitlement only after the third refusal. In 2017, the Revenu de Solidarité Active was paid out to 1.83 million families residing in mainland France or in Overseas Departments and Regions; those families received an average of €492 per month and the total expenditure amounted to €10.62 billion27.

• 28 J. O. Frosini, « Dalle Poor Laws all’Universal Credit: lo sviluppo del reddito di base nel contesto (...)
• 29 V. M. Faioli « I poveri digitali: a proposito di Universal Credit in UK », 2015: https://www.linked (...)

32In the UK, Income Support was introduced under the Social Security Contributions and Benefits Act in 1992 as a residual measure that applies only if other forms of assistance, such as unemployment benefits, cannot be used. In 2013, this measure was replaced by the Universal Credit program, which provided benefits to unemployed job seekers or persons with an income below the legal minimum28. It includes provisions to help beneficiaries find employment by going in for interviews and training. The standard monthly amount provided for a single person household is £231.67, plus an allowance for housing support, which may vary depending on the circumstances. Some of the criticisms of Universal Credit have addressed the service request procedures, which can only be completed electronically through the UK Department of Labour’s website or app. Still, this method risks excluding subjects on the fringes of digital technology, who are often the most socially fragile and who would in general be entitled to the subsidy29.

• 30 S. Haberl, « Reddito di cittadinanza e reddito minimo garantito nei sistemi tedesco e austriaco », (...)
• 31 Data from the Federal Employment Agency, reported by Zeit Online: https://www.zeit.de/wirtschaft/20 (...)

33In Germany, since 2005, the Arbeitslosengeld II program guarantees a monthly check and employment support program managed by « Jobcentres » for unemployed persons not entitled to allowances30. The subsidy is also provided to workers with incomes below €9,000. In 2019, the amount of the standard subsidy for a single-person household is €424; a variable component may be added to this as an allowance for housing deemed appropriate for the family. In 2017, benefits were provided under Arbeitslosengeld II to 4.08 million persons, for a total expenditure of €21 billion31.

• 32 The phenomenon is typical of the circulation of legal institutions known as « cross-fertilization » (...)
• 33 According to the professional association Paritätischer Wohlfahrtsverband, which brings together th (...)
• 34 « Jede arbeit », §10, Sozialgesetzbuch Sgb II.
• 35 Ibid., §10, para. 2.
• 36 Data from the Federal Employment Agency: https://www.arbeitsagentur.de/

34The German model, which inspired Italian lawmakers32 with the central importance given to « Jobcenters » (in Italy these are known as « centri per impiego »), the establishment of specific programs for beneficiaries, and the stipulation of the three job offers, has been roundly criticized for the long-term consequences of its measures33. Persons receiving benefits under Arbeitslosengeld II must demonstrate their willingness to look for a job and cannot refuse a reasonable job offer; otherwise their allowance will be reduced. The legislation specifies that « any job » is to be considered reasonable34, unless the subject is psychologically or physically unable to perform it. In particular, professions not corresponding to the beneficiary’s previous professional training or activity, which may present more unfavourable working conditions or for which the unemployed beneficiary may be professionally overqualified, are also considered reasonable35. Indeed, unemployed beneficiaries of this service are required to accept any job offer, even those unrelated to their previous training and professional experience. While the system helped reduce the unemployment rate from 11.7% in 2005 to 5.2% in 2018, it also helped increase inequality, contributing to the precariousness of workers who have had to apply for the subsidy because they have been forced to accept low-paid jobs. As a result of this and other issues, the subsidy has been the subject of controversy and debate for years. Designed as an instrument to help facilitate rapid reintegration into the working world, Arbeitslosengeld II is accused by critics of having become a bureaucratic monster and of having fostered precariousness. And the recipients of the subsidy are not all unemployed. They may also include persons who do have jobs but earn too little, and receive additional support from the Jobcentre. This category of beneficiaries - called Aufstockers - includes workers with jobs that guarantee them an income of €450 per month at most, as well as a good number of workers with regular full-time jobs. Since the introduction of the minimum wage in 2015, however, the number of the latter has dropped to around seven thousand. There are still around 1.2 million of these « Aufstockers », accounting for a quarter of the total number of subsidy beneficiaries. And the amount that the state pays them is increasing: in 2017, it exceeded €10 billion36.

• 37 S. Haberl, « Reddito di cittadinanza e reddito minimo garantito nei sistemi tedesco e austriaco », (...)
• 38 The Arbeitslosengeld lasts between 20 and 52 weeks, and may be extended up to 78 weeks; the amount (...)
• 39 The Notstandshilfe, paid for 52 weeks, accounts for around 90% of all unemployment benefits. It app (...)
• 40 https://www.wien.gv.at/statistik/soziales/tabellen/mindestsicherung-erloese.html

35In Austria, a 2010 agreement between the federal state and the Länder rationalized and standardized the old social assistance system, introducing the « Bms » (Bedarfsorientierte Mindestsicherung), i.e. a needs-based minimum benefit37. This is the third, residual pillar on which Austrian social welfare assistance is based, added to the benefits provided under the « Arbeitslosengeld » (unemployment benefits38) and the « Notstandshilfe » (emergency assistance39) programs. The « Bms » is a subsidy intended for those who are not able to meet their basic needs independently, and is granted to those who don’t have a job or whose work does not provide sufficient income for their subsistence. Payments are contingent upon the applicant’s situation of necessity, and limits on family income and property holdings are stipulated; exceeding these limits renders an applicant ineligible for the subsidy. Like for the other German benefit mentioned, the « Bms » is not linked to the most recent income level, and consists of a monthly allowance, the amount of which varies for the applicant’s « Land » of residence, consisting of a basic sum and an allowance for housing costs. In Vienna, where more than 60% of beneficiaries live, the benefit for 2018 comes to a total of €863 per month40.

• 41 P. Addis, « Reddito di cittadinanza e reddito minimo garantito in Portogallo e Spagna », Diritto Pu (...)
• 42 Art. 1, Lei no. 19-A/1996 of 29 June 1996.

36As for Portugal, while it has not introduced a citizenship income, it has implemented measures establishing a guaranteed minimum income41. A first measure, known as the Rmg (Rendimento minimo Garantido) was implemented by Lei no. 19-A of 29 June 1996; it consisted of a temporary, variable financial benefit intended to meet the essential needs of individuals and their families with a view to their progressive social and professional integration42. Recipients had to be of adult age, Portuguese citizens or otherwise, living in precarious economic and social conditions, and were asked to accept any job offered or to undertake training or social inclusion activities. In 2003, the Lei 13 of 21 May 2003 replaced the Rmg with the Rsi (Rendimento social de inserção). The measure, which is still in force today, though it was reformulated and reduced after the economic crisis, provided for stricter forms of control to prevent fraud and stipulated a series of obligations for the recipient as part of an inclusion contract. The maximum benefit under the measure is set at €189.66 per month, an amount which may be increased on the basis of any additional family members, up to €132.76 for family members over 18, and €96.83 for those younger than 18 years of age.

• 43 Spanish Constitution, art. 148, item 20.
• 44 Spanish Constitution, art. 149, item 17.
• 45 P. Addis, « Reddito di cittadinanza e reddito minimo garantito in Portogallo e Spagna », Diritto Pu (...)
• 46 See SEPE, Servicio Publico de Empleo Estatal : www.sepe.es

37In Spain, a complex mosaic of income support measures has been established, in particular because of the fact that the 1978 Constitution delegates social welfare assistance to the Autonomous Communities43 while reserving jurisdiction for social security law to the national courts44. As for minimum income provisions, the legislative production of both the central government and the Autonomous Communities has burgeoned along the permeable boundary between assistance and social security45. The Rai (Renta activa de inserción), for instance, was introduced nationwide by Real decreto no. 1369 of 24 November 2006. This measure is intended for unemployed persons under 65 years of age, in a situation of economic necessity, and not entitled to any other social welfare benefits. Beneficiaries must sign a Compromiso de actividad, participate in training activities, and must accept the job offers presented to them. The subsidy lasts no more than 11 months; for 2019 it has been set at €430 per month46.

• 47 See J. Cata, « La inestabilidad pone en jacque la renta garantizada », El Pais, 4.11.2018.

38Along with the Rai, which is essentially residual in nature, each Autonomous Community has set up its own income support service, though the legal wording may differ and requirements may vary in terms of duration and economic scope. The regional benefits share the objective of guaranteeing a minimum income, and promoting work and social inclusion. The duration varies from 6 months for the Ingreso mínimo de solidaridad, to 12 months for the Renta mínima de inserción social in Andalusia, to 36 months for the Renta valenciana de inclusio in force in the Comunidad Valenciana, or even for an unlimited period for the Renta mínima de inserción in Madrid, the Salario social básico des Asturias and the Renta Garantizada de ciudadanía of Castille and León. The benefits range from €300 per month (for the Murcia Region’s Renta básica de inserción) to €665 per month (for the Basque Country’s Renta de Garantía de ingresos). All of these measures constitute a framework that is anything but uniform and is constantly evolving, which often makes access to services difficult due to conflicts between national regulations and the measures implemented by the different Autonomous Communities47.

• 48 Paragraph 255 of Article 1 of the 2019 finance law provides: « The Ministry of Labor and Social Pol (...)
• 49 Presentation of the Reddito di cittadinanza: http://www.governo.it/sites/governo.it/files/RDC-Q100_ (...)
• 50 INPS statistical observatory, published 22.10.2019: www.inps.it/nuovoportaleinps/default.aspx?itemd (...)

39The RDC is the most substantial poverty reduction and employment promotion measure implemented to date in Italy. The investment allocated by the Government amounts to €7.1 billion for 2019, €8 billion for 2020, and will come to €8.3 billion per year starting in 202148. Forecasts released by the Ministry of Labour anticipated that 5 million people would receive benefits under the RDC49, which is double the number of persons who had received benefits under the REI. However, in reality, according to data from the INPS Statistical Observatory, although 1.5 million families submitted requests, the RDC was only granted to 982,000 families, providing monthly average benefits of €482 to an estimated 2.2 million employed persons50.

• 51 It was not until 15 November 2019 that the INPS published the computer procedure to be used to requ (...)

41ANPAL and the employment agencies will have a central role to play in rising to this challenge, pursuing the objective of strengthening the assistance scheme and reforming the system while providing support for the individual programs of millions of RDC beneficiaries. In 2019, actions promoting the return to the workforce appeared still to be in a nascent state: the recruitment of ANPAL consultants was still not complete (since the number of « Navigators » was to be determined by specific agreements between the central Government and the regional authorities), and the data communications platform intended to consolidate job applications and vacancies and give employers who hire RDC beneficiaries a special tax break, was still in the testing phase51.