Italy releases additional 9 billion against soaring prices

Italy releases additional 9 billion against soaring prices

The decree-law adopted by the government thus provides for tax credits for businesses and various other activities.

The Italian government on Thursday evening released a total of 9.1 billion additional euros to fight against soaring energy prices, announced a press release from the Ministry of the Economy published after a council of ministers. This amount “comes from extraordinary tax revenue”the statement said, thanks to a better than expected third quarter for the Italian economy.

The decree-law adopted by the government thus provides tax credits for companies and various other activities, such as bars, restaurants or shops, for the purchase of gas and electricity. It also provides for the maintenance of the reduction in excise duties on fuel until 31 December. In addition to the component providing for this financial aid, the government of Giorgia Meloni has also decided “with a view to increasing the national production of natural gas” to authorize new concessions for the extraction of gas at sea and to increase the quantities of gas extracted from concessions already in operation.

21 billion euros for households and businesses

These 9.1 billion euros of support from the Meloni government for families and businesses are in addition to the 66 billion euros that the government of his predecessor, Mario Draghi, had already spent in 2022 with the same objective. Italy’s 2023 budget will devote 21 billion euros to measures to support households and businesses in the face of soaring energy prices, Economy Minister Giancarlo Giorgetti said on Wednesday.

To release these additional resources to be financed by debt, the minister raised the country’s public deficit forecast for 2023 to 4.5% of GDP, against 3.4% forecast in September by the Draghi government. A month ago, the Italian employers had however called for 2023 aid measures of “40 to 50 billion euros” to avoid bankruptcy “thousands of companies” and the loss of “hundreds of thousands of jobs”.