Daily Management Review

Energy Import Costs For Italy Likely To Double To 100 Billion Euros In 2022


Energy Import Costs For Italy Likely To Double To 100 Billion Euros In 2022
The Italian government expects net costs for importing energy into the country will almost double this current year to about 100 billion euros ($99.5 billion), said the country’s economy minister, who also issued a caution about the country not being able to continue to spend for an indefinite period of time to soften the hit to the economy.
Italy imports three-quarters of its electricity, increasing its vulnerability to Europe's current energy crisis.
Italy's high debt limits its future options, the country’s Economy Minister Daniele Franco said at the annual Ambrosetti business forum.
Efforts to help out companies as well as energy consumers in tackling the higher energy bills will be approved by the government next week, following six aid packages that totalled 52 billion euros, according to Franco.
"To keep offsetting, at least in part, rising energy prices through public finances is very costly and we could never do enough," he said.
Franco stressed the importance of addressing the operating of Europe's energy market, where rising price of gas and dwindling Russian exports have forced up energy prices.
"What matters is to bring the price of gas and energy back to sustainable levels," Franco said.
And according to the French Finance Minister Bruno Le Maire, who was addressing the participants of the same conference, all connections between the costs for gas and that of electricity must be severed, resulting in "total decoupling" of gas and power prices.
According to Franco, Italy's net energy imports will cost 43 billion euros in 2021, roughly in line with previous years except for 2020, which was affected by the COVID-19 virus outbreak.
The increase of around 60 billion euros expected in 2022 amounts to roughly three percentage points of GDP and will wipe out Italy's recent net surplus in exchanges with the rest of the world, according to Franco.
"We are transferring abroad a significant part of our purchasing power," he added.