Headlines
Italy approves $3 billion package to help with energy costs
Published by Global Banking & Finance Review®
Posted on February 28, 2025
1 min readLast updated: January 25, 2026
Quick Summary
Italy approves a €3 billion aid package to help families and businesses with energy costs, aiming to boost the economy without increasing debt.
Italy Unveils €3 Billion Aid Package to Alleviate Energy Costs
ROME (Reuters) - Italy approved a set of measures on Friday worth roughly 3 billion euros ($3.12 billion) to help families and business cope with energy costs, Economy Minister Giancarlo Giorgetti said on Friday.
Italy's government introduced tax cuts in its 2025 budget to increase the purchasing power of low and middle-income earners as it strives to boost its economy.
Concerned the impact of the cuts will be blunted by high energy costs, it made a budgetary provision, approved on Friday, of 1.6 billion euros to support families and an additional 1.2 billion euros for small and medium-sized companies.
"The resources come from the budget so as to avoid the need for higher debt and deficit," Giorgetti said.
Italy has pledged to bring its budget deficit below the European Union's 3% of GDP ceiling in 2026 from 3.8% targeted in 2024, limiting its scope to support the economy.
($1 = 0.9604 euros)
(Reporting by Giuseppe Fonte; editing by Barbara Lewis)
Key Takeaways
- •Italy approves a €3 billion aid package for energy costs.
- •The package includes tax cuts in the 2025 budget.
- •1.6 billion euros allocated for families, 1.2 billion for businesses.
- •The aid aims to avoid increasing national debt and deficit.
- •Italy targets a budget deficit below 3% of GDP by 2026.
Frequently Asked Questions about Italy approves $3 billion package to help with energy costs
1What is the total value of Italy's energy cost relief package?
Italy approved a set of measures worth roughly 3 billion euros ($3.12 billion) to help families and businesses cope with energy costs.
2How will the aid package support families?
The budgetary provision includes 1.6 billion euros specifically aimed at supporting families facing high energy costs.
3What is Italy's target for its budget deficit?
Italy has pledged to bring its budget deficit below the European Union's 3% of GDP ceiling by 2026, down from 3.8% targeted in 2024.
4What measures are included in Italy's 2025 budget?
Italy's government introduced tax cuts in its 2025 budget to increase the purchasing power of low and middle-income earners.
5How does the government plan to fund the relief package?
The resources for the aid package come from the budget, allowing the government to avoid the need for higher debt and deficit.
