Italy’s costs to import energy will double to 100 billion euros

CERNOBBIO, Italy, Sept 3 (Reuters) – Italy’s internet power import prices are set to greater than double this yr to almost 100 billion euros ($99.5 billion), the financial system minister stated, warning Rome couldn’t spend indefinitely to cushion the blow on the financial system.

Italy depends on imports for three-quarters of its energy consumption, growing its vulnerability to Europe’s present power disaster.

Addressing the annual Ambrosetti enterprise discussion board on Saturday, Financial system Minister Daniele Franco stated Italy’s excessive debt decreased its room for manoeuvre going ahead.

Measures to assist companies and shoppers deal with excessive power payments will probably be authorized subsequent week, following six support packages up to now price in whole 52 billion euros, Franco stated.

“To maintain offsetting, no less than partially, rising power costs by means of public funds may be very expensive and we may by no means do sufficient,” he stated.

Franco stated it was key to handle the functioning of Europe’s power market, the place hovering fuel costs amid shrinking Russian exports have pushed energy costs larger.

“What issues is to convey the worth of fuel and power again to sustainable ranges,” Franco stated.

Talking on the similar convention on Saturday, French Finance Minister Bruno Le Maire stated it was essential to extreme any hyperlinks between the worth of fuel and that of electrical energy, transferring to “a complete decoupling” of fuel and energy costs.

Italy’s internet power imports value 43 billion euros in 2021, broadly in keeping with earlier years barring 2020 which was affected by the COVID-19 virus outbreak, Franco stated.

The rise of round 60 billion euros anticipated in 2022 quantities to roughly three share factors of gross home product and can wipe out the online surplus in exchanges with the remainder of the world Italy recorded in recent times, Franco warned.

“We’re transferring overseas a major a part of our buying energy,” he added.

($1 = 1.0049 euros)

Reporting by Valentina Za and Elvira Pollina; Modifying by Andrew Cawthorne and Mike Harrison

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