ROME: Italy has abolished voucher payments for workers, which were highly popular with employers, to avoid a bruising referendum championed by the country’s main union, Prime Minister Paolo Gentiloni said on Friday.
Payment by vouchers was introduced in 2008 as an experiment for seasonal farm laborers. The flexible and unregulated form of payment was aimed at encouraging bosses to stop hiring workers on an illegal, ad hoc basis.
Its use has spread rapidly across many sectors, with 1.7 million people — about 8 percent of all working Italians — receiving some or all payment in vouchers in 2015, angering the CGIL union, which has promoted a referendum on the issue that was due to be held on May 28.
The ruling center-left Democratic Party lost a referendum in December on constitutional reform, forcing the resignation of then-Prime Minister Matteo Renzi, and the government is anxious to avoid another bruising ballot-box battle.
“We have done this in the knowledge that Italy does not need an election campaign on themes such as this in the months ahead,” Gentiloni told reporters, announcing his Cabinet’s decision to scrap the vouchers immediately.
The CGIL hailed the move as a “great success” but employers and center-right political parties denounced the elimination of the vouchers, saying it would push parts of the economy back into the shadows and complicate legal job creation.
Under the voucher system, workers are not paid directly in money but with certificates, which the employer buys online, or at a post office or tobacconist, for €10 ($11), 20 euros or 50 euros each.
Workers then cash their vouchers in and receive €7.5 for each €10 of face value, with €2.5 going to the state to cover insurance and pension contributions.
Without an employment contract, workers have no rights in areas such as sick pay, holidays or leave, while there are obvious advantages and savings for employers. Unions said bosses were also abusing the system, paying only some wages in vouchers and the rest in cash.
The government said it would work with unions on drawing up a replacement system.
The Eurointelligence think-tank said the end of the easy-to-use vouchers showed the impossibility of reforming hidebound Italy, which has regularly underperformed other euro zone economies since the launch of the single currency in 1999.
Italy scraps employment voucher system
Italy scraps employment voucher system
Six vital sectors drawing US investors to Saudi Arabia
RIYADH: Six vital sectors are drawing US investors, including entrepreneurs and small businesses, to Saudi markets as the Kingdom continues to develop its regulatory framework and foster innovation, Deborah Lehr, interim CEO of the Meridian International Center, said in an interview with Al-Eqtisadiah.
Lehr, who is heading a trade and investment delegation to Saudi Arabia in her capacity as an economic advisor affiliated with the White House, stated that the six sectors include hospitality, luxury goods, and tourism, as well as culture, technology, and others.
She noted that Saudi Arabia has significantly eased the process for foreign companies to establish a presence, a critical factor for small and medium-sized enterprises that may not yet have the scale to expand, making the Kingdom an attractive market for both large and innovative small companies.
Following the success of the Saudi Crown Prince’s recent visit to Washington, she said, Meridian organized a US trade delegation to explore tangible and growing opportunities for US businesses in Saudi Arabia.
Translating Vision 2030 priorities into real partnerships
The delegation, which included representatives from Delta, Intel, Pernod Ricard, and Basilinna, among others, met a wide range of government officials, private-sector leaders, and entrepreneurs to explore how US companies can participate in Saudi market growth.
According to Lehr, discussions were practical and forward-looking, focusing on translating Vision 2030 priorities into real business partnerships.
She highlighted that most of the companies in the delegation were large enterprises operating across various sectors, underscoring the diversity of businesses active in Saudi Arabia.
She pointed out that these companies joined the mission because they see the potential to scale their operations in Saudi Arabia — whether by increasing flight routes, enhancing airport security, offering advisory services to firms entering the Saudi or US markets, or exploring opportunities in the beverage sector.
Relationship increasingly taking economic dimension
Lehr hinted to the Saudi minister of investment that the US-Saudi relationship is also increasingly taking on an economic dimension.
She noted that bilateral trade stands at around $40 billion, compared with Saudi-China trade of approximately $110 billion, highlighting untapped growth potential between the two countries, especially as diplomatic and political ties continue to strengthen.
She said the reforms present valuable opportunities for US companies across multiple sectors, including advanced manufacturing, technology and logistics, as well as aviation, tourism and culture, alongside a wide range of services.
With the regulatory environment being modernized and business stability increasing, the scope of US investment is set to expand further. More importantly, she added, the greater the engagement of companies, the stronger and more resilient the bilateral relationship will become in the years ahead.
She emphasized that Saudi Arabia has undergone deep social and economic transformations, including increased female participation in the workforce and entrepreneurship, while emerging as a cultural hub with a thriving arts scene and new platforms for creative expression.
Lehr further said that the world will witness growing global interest from companies and institutions eager to be part of Saudi Arabia’s remarkable transformation, amid increasing openness and a willingness to share its history, culture, and ambitions with the world.
Saudi agenda offers tangible opportunities
Lehr highlighted that during her visit, she focused on three key economic priorities. The first is Saudi Arabia’s strategic shift of capital from the oil and gas sector toward technology and innovation, a move that signifies not only economic diversification but also the Kingdom’s emergence as a globally competitive player.
Second, the Kingdom’s reform agenda has provided tangible opportunities for foreign companies, reflecting real changes that facilitate international participation in Saudi growth.
The third point she focused on was that the strong geopolitical and economic ties between the US and Saudi Arabia have bolstered investor confidence. As the Kingdom strengthens its global role and deepens relationships with partners such as the US, its attractiveness for long-term foreign direct investment continues to grow.
She noted that sectors such as artificial intelligence, gaming and entertainment, advanced manufacturing, and the technology ecosystem are areas in which the US has strong competitive advantages, at a time when US firms are seeking new markets that offer stability and long-term potential.
Giga-projects in Saudi Arabia, including AlUla and NEOM, have attracted global attention and highlighted emerging opportunities across the country.
These projects demonstrate the Kingdom’s ambitious vision and its creation of entirely new sectors rather than merely expanding existing ones.
