Feb 27, 2025
Italy prepares a $3 billion aid package to assist families and businesses in managing energy expenses.
Italy will announce a series of measures on Friday totaling around 3 billion euros ($3.14 billion) to assist families and businesses in dealing with high energy costs, according to Deputy Prime Minister Matteo Salvini.
The rising prices of gas pose a significant challenge for the Italian government, threatening to undermine the effects of the tax cuts included in the 2025 budget designed to enhance the purchasing power of low and middle-income households.
The cabinet is also expected to approve draft legislation on Friday that would permit the reintroduction of nuclear power, which has been banned for nearly 40 years, as stated by a representative from the energy ministry.
"We will allocate 2 billion euros to support families and an extra 1 billion for small and medium-sized enterprises (SMEs)," Salvini mentioned during a radio interview.
This aid package will only be in effect for three months, as the Italian government anticipates a decline in gas prices with the approach of summer.
"We hope for a ceasefire between Russia and Ukraine in the next three months, which would provide some relief to energy markets," Salvini added.
U.S. President Donald Trump is advocating for a swift conclusion to the three-year conflict that began with Russia's invasion of Ukraine in February 2022, which has contributed to rising global energy prices.
As of Thursday at 1027 GMT, the benchmark front-month contract at the Dutch TTF hub had increased by 2.6 euros to 44 euros per megawatt hour (MWh), according to LSEG data.
Italy, which has high debt levels, has committed to reducing its budget deficit below the European Union's 3% of GDP limit by 2026, down from the 3.8% targeted for 2024, which restricts its ability to support the economy.
The government was prepared to finalize the aid package on Monday; however, Prime Minister Giorgia Meloni postponed the decision, believing that the measures proposed by the economy and energy ministries were too numerous and lacked sufficient effectiveness, as reported by officials.
Meloni pressured her senior aides to ensure a substantial portion of the resources allocated on Friday would benefit families, they mentioned.
The legislation regarding nuclear power is part of a broader strategy to construct small modular reactors, which the government claims could aid in decarbonizing Italy's most polluting industries, including steel, glass, and tile manufacturing.
Nuclear power plants were banned in Italy following referendums in 1987 and 2011, but the government is currently drafting regulations to lift the prohibition.
Industry Minister Adolfo Urso announced on Wednesday that state-backed companies Enel, Ansaldo, and Leonardo are close to establishing a company to explore effective solutions for building nuclear reactors in Italy.
Italy is also in discussions with several firms, including the U.S. energy group Westinghouse and France's EDF, as potential partners for this state-supported company.
The rising prices of gas pose a significant challenge for the Italian government, threatening to undermine the effects of the tax cuts included in the 2025 budget designed to enhance the purchasing power of low and middle-income households.
The cabinet is also expected to approve draft legislation on Friday that would permit the reintroduction of nuclear power, which has been banned for nearly 40 years, as stated by a representative from the energy ministry.
"We will allocate 2 billion euros to support families and an extra 1 billion for small and medium-sized enterprises (SMEs)," Salvini mentioned during a radio interview.
This aid package will only be in effect for three months, as the Italian government anticipates a decline in gas prices with the approach of summer.
"We hope for a ceasefire between Russia and Ukraine in the next three months, which would provide some relief to energy markets," Salvini added.
U.S. President Donald Trump is advocating for a swift conclusion to the three-year conflict that began with Russia's invasion of Ukraine in February 2022, which has contributed to rising global energy prices.
As of Thursday at 1027 GMT, the benchmark front-month contract at the Dutch TTF hub had increased by 2.6 euros to 44 euros per megawatt hour (MWh), according to LSEG data.
Italy, which has high debt levels, has committed to reducing its budget deficit below the European Union's 3% of GDP limit by 2026, down from the 3.8% targeted for 2024, which restricts its ability to support the economy.
The government was prepared to finalize the aid package on Monday; however, Prime Minister Giorgia Meloni postponed the decision, believing that the measures proposed by the economy and energy ministries were too numerous and lacked sufficient effectiveness, as reported by officials.
Meloni pressured her senior aides to ensure a substantial portion of the resources allocated on Friday would benefit families, they mentioned.
The legislation regarding nuclear power is part of a broader strategy to construct small modular reactors, which the government claims could aid in decarbonizing Italy's most polluting industries, including steel, glass, and tile manufacturing.
Nuclear power plants were banned in Italy following referendums in 1987 and 2011, but the government is currently drafting regulations to lift the prohibition.
Industry Minister Adolfo Urso announced on Wednesday that state-backed companies Enel, Ansaldo, and Leonardo are close to establishing a company to explore effective solutions for building nuclear reactors in Italy.
Italy is also in discussions with several firms, including the U.S. energy group Westinghouse and France's EDF, as potential partners for this state-supported company.