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Italy will subsidize electricity bills with 30,000 million euros

Italy will subsidize electricity bills with 30,000 million euros

of the package of €30 billion ($29.7 billion), a third part of the figure will be allocated as immediate through a decree that will be signed next week, which will allow to give continuity to the assistance arranged by the former prime minister, Mario Draghi.

While, the other 21,000 million will be incorporated into the General Budgets of 2023as reported by the DPA news agency and the Italian newspaper La Repubblica.

After formalizing the measure at a meeting of the Council of Ministers, Meloni and the Minister of Economy and Finance, Giancarlo GiorgettiThey acknowledged at a press conference that the country does not escape the threat of a recession.

“It could also touch Italy. We are prepared to face these risks, that is why we present ourselves to Parliament with a responsible attitude,” he said. Giorgetti.

The rest of the euro zone already shows signs of recession: the final composite index Purchasing Managers Survey (PMI) of S&P Global for the eurozoneconsidered a good barometer of economic health in the region, was better than expected, registering a level of 47.3% in Octoberabove the 47.1% expected.

In parallel, the European Central Bank warned that economic activity in the euro zone is heading for a recession scenario of about 1% in 2023in a context of monetary adjustment and energy crisis related to the war in Ukraine.

However, the new Italian right-wing coalition analyzes cutting other social benefits like the so-called “reddito di cittadinanza”, a minimum wage for the unemployed or families with annual income of less than 6,000 euros that has reduced poverty since its introduction in 2019.

The goal of the Meloni administration is maintain fiscal order returning to a 3% deficit in 2025according to the traditional limit of the European Union, which has been suspended temporarily in the framework of the energy crisis. Added pressure to this scenario is the possible shortage and rise in prices as of December 5, when the embargo dictated by the European Union on oil from Russia will come into force.

Similarly, it will search reduce public debtwhich currently represents a 150% of the Gross Domestic Product (GDP).

Italians are particularly affected by the rising cost of living, with inflation that in October was 11.9% per year. A similar situation is experienced in Germanya country that registers an inflation of 10.4% per year, a record in 70 years, according to the DPA agency. there the food banks recorded a 50% increase in your attendees since the beginning of this year, according to the organization that groups them, Tafel Deutschland.

“People have great fears and existential worries about how to pay for food, housing, heating,” said the organization’s president, Jochen Brühl. The situation does not only affect people with lower incomes: almost three-quarters of Germans are worried about a possible economic recession and adjust their purchasing behavior accordinglyaccording to a YouGov survey commissioned by management consultancy Simon-Kucher & Partners.

Source: Ambito

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