Deficit or inflation? Meloni’s dilemma against expensive energy

Palazzo Chigi has a bottleneck ahead of it and must choose between preserving the balance of accounts, to which it has so far shown itself to be sensitive, earning a certain appreciation in Europe, or continuing to support the social and productive fabric but making more debt

Italy is the country that spent the most in Europe to subsidize the energy costs of households and businesses in 2022, according to estimates by the European Commission. And last week the Meloni government, instead of starting the gradual reduction of aid, as hoped by the Commission, extended part of the support measures in the second quarter of this year, above all the cut in VAT (from 22.5 to 5 percent). Well, this decision has a high cost and represents the most significant part of the 4.9 billion euro provision approved by Palazzo Chigi.