Italy plans $3bn aid package to address rising energy costs #ItalyFinance

Italy is set to introduce a $3bn package aimed at supporting families and small and medium-sized enterprises (SMEs) in coping with escalating energy costs.

Deputy Prime Minister Matteo Salvini highlighted the urgency, as rising gas prices threaten to undermine recent tax cuts designed to boost the purchasing power of low and middle-income earners, as reported by Reuters.

The government plans to allocate €2bn ($2.08bn) to assist families and an additional €1bn for SMEs.

The aid package will be effective for three months, with hopes that gas prices will decline as summer 2025 approaches.

Salvini expressed optimism about a potential ceasefire between Russia and Ukraine, which could alleviate energy market pressures.

The Italian cabinet is also preparing draft legislation to re-introduce nuclear power, which has been banned in the country for almost 40 years.

The move is part of a broader strategy to build small modular reactors to decarbonise industries such as steel, glass and tilemaking.

Italy’s Minister of Economic Development Adolfo Urso noted that Enel, Ansaldo and Leonardo are close to forming a company to explore nuclear reactor solutions.

The country is expected to finalise a strategy to re-introduce nuclear power by the end of 2027.

The current government, led by Prime Minister Giorgia Meloni, is considering small modular reactors (SMRs) and advanced modular reactors as potential solutions to reduce carbon emissions in the country’s most carbon-heavy industries, including steel, glass and tile manufacturing.

Italy’s budget constraints are significant, with a commitment to reduce the budget deficit to below the EU’s 3% of GDP ceiling by 2026.

Meloni delayed the aid package decision to ensure a focus on family benefits.

The government is also in discussions with companies such as Westinghouse and EDF for potential collaboration on nuclear projects.

“Italy plans $3bn aid package to address rising energy costs” was originally created and published by Power Technology, a GlobalData owned brand.

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