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Bank of Italy says Italian firms see economic future bleak

Tuesday, 11 October 2022 3:16 AM [ Last Update: Tuesday, 11 October 2022 7:37 AM ]

Max Civili
Press TV, Rome

A study presented by the Bank of Italy on Monday raised the alarm on the Italian companies' sentiment about their future. According to the report, based on information gathered between August 15 and September 15, spiraling inflation and uncertainty linked to the conflict in Ukraine have badly dented optimism. The Bank of Italy surveyed companies in the industrial and service sectors with at least 50 employees.

A third of the firms surveyed said difficulties related to rising energy costs had worsened in the previous three months, sparking a downward revision in their investment plans for the remainder of the year. The war between Ukraine and Russia has made an Italian energy crisis much worse. Italy received 40% of its gas imports before the conflict from Russia.

Giorgia Meloni, the leader of a right-wing coalition that won elections about two weeks ago, is likely to become Italy's next prime minister. Meloni will face no shortage of challenges from the budget and recovery plans to finding unity with allies in deciding how to handle the Ukraine-Russia war.

So far, the Mario Draghi's government has spent 66 billion euros in an attempt to shield firms and families from surging energy costs. Italy’s finances are set to be further put to test as analysts predict the next government will be forced to increase fiscal aid or even resort to a budgetary slippage.

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