Italy could move 2 trillion euros from tax cuts to cuts in energy prices

ROME (Reuters) – Italy is looking to increase its funding of about 2 trillion euros ($ 2.27 trillion) in reserves to reduce energy prices next year, using pre-planned resources to reduce income and corporate taxes, three government sources said.

As international energy prices have risen this year, the Mario Draghi government has already spent more than € 4 billion to try to reduce service bills by compensating companies that agreed to limit tariffs.

Draghi saved an additional € 2 billion in next year’s 2022 budget approved by the cabinet in October, but as energy cost pressures continue to drive up consumer price inflation, the government is looking to double that amount.

($ 1 = $ 0.8828)