Italy prepares stimulus package worth up to $13.3 billion – Treasury official

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People line up for free food as Italy grapples with the problem of zero wage growth over the past 30 years, in Milan, Italy June 14, 2022. Picture taken June 14, 2022. REUTERS/ Flavio Lo Scalzo

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ROME, July 25 (Reuters) – Italy is preparing a new stimulus decree worth up to 13 billion euros ($13.3 billion) to help families and businesses cope with soaring electricity, gas and oil costs, Deputy Economy Minister Laura Castelli said on Monday. .

The new regime, which comes on top of some 33 billion euros already budgeted since January, is expected to be one of the last major moves by Prime Minister Mario Draghi, who resigned last week, paving the way for a snap national election. September 25. . Learn more

Among the measures under consideration, the government could temporarily exempt essential consumer products such as pasta and bread from VAT, Castelli told Radio 24.

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Other measures include subsidizing energy supply for low-income families and energy-intensive businesses, the deputy minister added.

The package will be financed by savings or higher revenues elsewhere in the state budget and therefore will not weigh on the public deficit, said Castelli.

Draghi said in a speech to the upper house last week that a new set of measures would be adopted to help offset the impact of rising prices. Read more

Italy’s EU Harmonized Consumer Price Index (HICP) was 8.5% in June, down from 7.3% in May.

Core inflation (net of fresh food and energy) stood at +3.8% year-on-year on the HICP index in June, compared to 3.2% the previous month.

“Inflation has never been so high since 1986. It is a phenomenon that is significantly eroding the purchasing power of Italians,” Castelli said.

($1 = 0.9801 euros)

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Reporting by Giuseppe Fonte Editing by Keith Weir

Our standards: The Thomson Reuters Trust Principles.

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