Italy needs 50b euros to save companies facing energy hikes
Italy's business association Confindustria appealed Monday for an aid package of 40 to 50 billion euros to prevent thousands of companies failing and mass job losses due to soaring energy prices.
"Without industry, there is no Italy. If we close thousands of companies, hundreds of thousands of jobs will be lost," the lobby's head Carlo Bonomi said in an interview with La Stampa daily.
"I am more concerned now than I was at the start of the pandemic," he said, adding that he estimated some "40 to 50 billion euros by 2023" ($39 billion to $48 billion) were needed.
Giorgia Meloni, who is set to lead Italy's incoming government after her party won last month's election, will "have to resort to other resources... if (she) cannot count on European solidarity to reduce the energy bill".
Italian companies are expected to pay 110 billion euros more in 2022 than they did before the pandemic, of which 55.6 billion is due in the period September to December, the association said in a report.
Outgoing prime minister Mario Draghi's government has already spent 66 billion euros to help families and businesses tackle the energy crisis, financed by higher-than-expected tax revenues.
But economic output is expected to decline slightly in the second half of the year, a downturn which could continue into the first quarter of 2023, according to a government forecast -- plunging the country into recession.
That would reduce tax revenues and limit the new government's room for manoeuvre.
Meloni has been reluctant to consider any budget slippage, considering Italy's vast existing debt -- some 150 percent of gross domestic product (GDP).
Germany is in the process of finalising a 200-billion-euro gas price relief scheme, which has been strongly criticised by European partners, including Italy, as likely to create an unfair advantage for its industry, compared to those who cannot afford such aid measures.