Bills, Franco: “Possible other interventions against price increases”

The Minister of Economy: we must avoid that the high costs of energy block the economic recovery. Since last summer, almost 10.5 billion of public money has been allocated to cushion the impact of the increases in electricity and gas

“Other interventions may be adopted in relation to the evolution of the situation. It is absolutely necessary to avoid that the cost of energy blocks the recovery of production ”. Economy Minister Daniele Franco confirms that, if necessary, the government is ready to open a new parachute against expensive-bills.

The extraordinary increases in electricity and gas, which are weighing on the pockets of households and corporate accounts, could therefore be buffered by other injections of public money. The number one of the Treasury does not go into detail. It is not clear, in fact, when energy prices will peak. But it now appears certain that there will be no cooling shortly.

We know that the government has a series of hypotheses on the table which, all together, could make it possible to find tens of billions to contain the impact of the increases without resorting to new public debt. And, remember the number one of the Treasury in Telefisco del Sole 24 Ore, a similar figure, nearly 10 and a half billion, has already been allocated by the state (starting from last summer) to calm the increases.

The next few months, therefore, will tell us if what has been done so far is sufficient. What is certain is that energy has become, together with the pandemic and international tensions (think of the winds of war in Ukraine), one of the greatest concerns of Palazzo Chigi.

Franco tells us that in 2021 the recovery was strong, close to 6.5 per cent, therefore better than the government’s own forecasts. And this year it should exceed 4 percent, compared to the estimate of 4.7 made by the Executive at the end of September.

In any case, it must be taken into account that in 2020 the gross domestic product was dropped by nearly nine points and – the minister foresees – that thud will be recovered only at the end of March.

For this, Franco concludes, we must continue to to “decisively” support the economy and employment but – also – to maintain high growth in the coming years, by implementing the National Recovery Plan, that is, by spending the European money from the Recovery Fund and carrying out the reforms.