News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexCryptocurrenciesCybersecurityPress Releases

Italy approves new package to curb energy bills, help COVID-hit firms

01/21/2022 | 11:37am EDT
Milan's business district skyline is seen from Duomo's Cathedral downtown Milan

ROME (Reuters) -Italy approved a set of new measures on Friday designed to curb surging energy bills and help companies cope with the latest wave of coronavirus infections.

The scheme, funded by a series of compensatory measures, will not weigh on the public deficit which the Treasury is keen to reduce to 5.6% of growth this year from 9.4% in 2021.

The energy package, which is worth 1.7 billion euros ($1.93 billion), comes on top of more than 8 billion euros Rome has stumped up since last July to curb bills for households and business.

Soaring energy prices, triggered by heavy demand for gas as economies look to emerge from the health pandemic, have prompted governments across Europe to introduce measures to try to shield consumers.

The government said it plans to use around 1.2 billion euros of proceeds from carbon permit auctions to cut system-cost levies weighing on many firms. Such levies typically account for more than 20% of Italian retail energy bills.

Additional resources to mitigate bills will come from a clawback of profits from some operators benefiting from certain fixed-tariff solar power incentives that cost consumers some 6 billion euros per year.

But the government put on hold a securitisation scheme aimed at further cutting system-cost levies in energy bills due to its impact on state coffers, a minister told Reuters asking not to be named.

The energy transition ministry had estimated such a measure could generate at least 2.5 billion euros in savings.

The package approved on Friday also envisages grants and tax breaks to help hard-hit businessess such as discos, theme parks, wedding organisers and restaurants. The cabinet office did not detail the total amount of the subsidies.

According to a draft seen by Reuters, Rome also allocated 150 million euros to compensate those suffering side effects from COVID-19 vaccinations and 50 million to help pig farmers cope with a recent African swine fever outbreak.

($1 = 0.8818 euros)

(Reporting by Giuseppe Fonte and Stephen Jewkes; Editing by Gavin Jones, Jan Harvey and Angus MacSwan)

© Reuters 2022
Latest news "Economy & Forex"
12:30pUK navy says it seized smuggled Iranian missiles
12:27pRUSSIAN AMBASSADOR : Johnson's fall is just reward for 'belligerent' policy on Ukraine
12:26pUK stocks climb more than 1% after Boris Johnson quits as PM
12:20pUK'S JOHNSON TELLS MINISTERS : no major policy changes until new leader chosen
12:19pBoE's Pill will consider bigger rate rises if needed
12:14pSanctioned Venezuelan staves off auction of New York City apartment
12:12pLNG market has space for medium-term contracts, says Vitol executive
12:05pBrazil expects record 2022 wheat crop of 9 mln tonnes
12:01pTwitter says it removes over 1 million spam accounts each day
12:00pMeta will no longer require a facebook account to access its vir…
Latest news "Economy & Forex"