To compensate for the rise in energy prices, Italy is releasing 14 billion euros in additional aid. Rome will finance this new support through a tax on the profits of energy companies.
Mario Draghi, the Italian Prime Minister, announced it on Monday evening May 2: Italy will release 14 billion euros in additional aid to make in the face of soaring energy prices. ” These measures represent 14 billion euros, in addition to the 15.5 billion already planned. We therefore arrive at a total of almost 30 billion euros, or two percentage points of gross domestic product (GDP) “, he declared in front of the press at the end of a Council of Ministers.
Presidente Draghi: I provvedimenti di oggi valgono 14mld di euro che si aggiungono ai 15.5 mld dei provvedimenti precedenti. If arrived at circa 30 mld già spesi, che reportano 2% circa del Pil. Interventi effettuati senza scostamenti di the balance sheet pic.twitter.com/24PZQkNag9
— Palazzo_Chigi (@Palazzo_Chigi) May 2, 2022
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To finance this additional aid, Mario Draghi does not want to resort to a budget extension. Italy’s public debt is already very high; it now represents 160% of the country’s GDP.
Mario Draghi will therefore rely on the tax on the excess profits of companies in the energy sector, introduced in March. It will increase from 10% to 25%. To fight against rising prices, the government has also announced that it will extend its 30-cent discount at the pump until July.
The objective of these measures is to defend the purchasing power of families and the production capacity of companies “said Mario Draghi. There is urgency because Italy is facing high inflation. In March, the country recorded a rate of 6.7%, unheard of for 30 years.