On Friday, Italy approved an aid package worth some 14 billion euros (USD 14 billion) to shield companies and families from rising energy costs and consumer prices. The new package comes after some 52 billion euros already budgeted since January to soften Italy’s energy crisis.

The said scheme will be funded through higher value-added tax revenues due to rising gas and electricity bills. Prime Minister Mario Draghi has rebuffed pressure from several parties to increase this year’s fiscal deficit above the target of 5.6 per cent national output set in April.

Reportedly, state export agency SACE would offer free-of-charge guarantees on loans with a rate no more than that paid by government bonds with the same maturity. Under the draft, the financing applies to energy bills issued in the last quarter of 2022.

Among other measures, the scheme also envisages a one-off 150 euro bonus for 22 million workers and pensioners with an annual income lower than 20,000 euros. The government also plans to introduce tax breaks that lower electricity and gas bills for firms. The said package extends through November a cut in excise taxes on fuel at the pump, which is currently due to expire on October 17.