Yesterday, Italy approved an aid package of around 14 billion euros to protect companies and families from rising energy costs. It is likely to be outgoing Prime Minister Mario Draghi's last major act before the September 25 election.
The latest measures come on top of around 52 billion euros already approved since January to alleviate Italy's energy crisis.
They will be financed by higher value-added tax revenues as a result of increases in electricity and gas bills and adjustments elsewhere in the state budget, without resorting to additional borrowing that some parties have called for, Reuters reported.
Dragi told reporters that the government "helps families and companies without jeopardizing public finances and causing tensions in the markets."
Italy confirms the 2022 budget deficit target of 5,6 percent of GDP that was set in April, Economy Minister Daniele Franco said at a press conference with Draghi.
Despite the deteriorating economic outlook due to the impact of the Ukraine war, Draghi said he does not yet see signs of a recession in Italy.
He also said that he is not available for another prime ministerial mandate, regardless of the outcome of the elections, in which he is not a candidate.
Some centrist parties are advocating for the former head of the European Central Bank to continue as prime minister if there is no clear winner after the election.
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