Italy’s government is planning further measures to cushion the impact of high energy prices, including extending the fuel tax holiday until early October, Il Messaggero newspaper reported.
The package of measures, which is likely to be approved in the second half of July according to the newspaper, will be worth around 8 billion euros ($8.3 billion). The cost will be covered by Italy’s better-than-expected economic and fiscal performance this year.
In total, the new relief will bring Italy’s total spending on easing the energy crisis to nearly 40 billion euros, Il Messaggero reported, citing unnamed sources working on the draft law.
On June 30, Prime Minister Mario Draghi’s government approved measures to support long-term contracts for natural gas imports, a tax cut on household energy bills and a €4 billion loan to energy market operator GSE SpA to accelerate the filling of natural gas storage facilities ahead of next winter.
According to Il Messaggero, the package currently being prepared will:
It extends the cut in fuel taxes by €0.3 per liter until early October from the current end date of August 2.
It will refinance a tax credit for businesses commensurate with their spending on gas and electricity. The discount ended on June 30 and will be extended for another three months.
On Saturday, Italy’s ecological transition minister Roberto Cingolani told SkyTg24 that Russia had cut its natural gas exports to Italy by 15% from normal levels. While Cingolani expects prices to rise further after the planned maintenance shutdown of the Nord Stream pipeline, he said filling natural gas storage to 90 percent by winter remains an “achievable” goal.
The Draghi government is expected on Monday to appoint a czar to streamline Italy’s response to the current drought, which is crippling agriculture and hydropower production. The prime minister is also expected to meet with his predecessor Giuseppe Conte to smooth over recent government tensions.
Source: Capital
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