Italy's business lobby asks for state assistance over energy costs and US tariffs

The main Italian business lobby Confindustria demanded on Tuesday billions of euro in state aids to help companies cope with rising energy costs and the threat of U.S. tariffs.

Emanuele orsini, the chairman of Confindustria in Bologna (northern Italy), said that the European Union must also allow its member states to increase spending on investments to stimulate them without violating the fiscal rules.

Orsini stated that "we need to act immediately" to reduce energy costs. He added that the business world was facing an "unsustainable situation."

He said that the funding for this aid package could be derived from a restructured post-COVID recovery program in Italy, which is EU-backed, as well as EU regional development funds.

The average price of electricity in Italy was 109 euros ($123.68), nearly twice that of France, last year.

Then, you can use the

Trade war between Europe and United States is possible

Orsini, who said that the government should provide tax incentives to businesses for 8 billion Euros over a period of three to five years to encourage investment, added to the uncertainty.

Meloni, speaking at the same event said that the government's most pressing concern is the rising cost of energy. She added, however, that "spending taxpayer money cannot be a solution."

Confindustria's members are known for their calls for tax cuts for corporations and state subsidies. However, they have little interest in raising wages for workers. Italian salaries have fallen below 1990 levels, inflation adjusted.

Meloni stated that her government is conducting an evaluation of the national market for energy to determine if high prices are partly due to speculation.

She said that Italy is discussing with EU authorities how to spend up 15 billion euro of EU funds already allocated, to boost the country’s chronically low productivity.

Rome has committed itself to reducing its budget deficit

Below the European Union's 3 % of Gross Domestic Product (GDP).

Ceiling in 2026 from a ratio of 3.8% in 2024.

(source: Reuters)