ROME - Italy's new "baby bonus" initiative was launched on Monday, marking the latest step in the country's ongoing efforts to reverse its declining birthrate.

The Italian National Institute for Social Security on Monday unveiled the formal process for families to access a tax-free allowance of 1,000 euros (1,135 US dollars) for each child born or adopted in 2025.

The bonus will be granted to Italian citizens as well as citizens of other European Union (EU) member states and non-EU nationals who hold legal long-term residency in Italy.

The allocated budget for the "baby bonus" is set at 330 million euros for 2025, with plans to increase the funding to 360 million euros in 2026.

Italian Prime Minister Giorgia Meloni has said that raising the birthrate is among the government's top priorities.

Italy's National Statistics Institute reported in March that the country's fertility rate in 2024 fell to a record low of 1.18 children per woman, down from the previous record of 1.19 set in 1995. Both figures fall significantly short of the "replacement rate" of 2.1 needed to maintain a stable population.?