Italy's businesses facie bankruptcy due to soaring energy prices
Italy's energy crisis keeps getting more worrying by the day as wholesale gas prices have surged to skyrocketing levels.
Italy, like most of its European neighbors, has reviewed its energy strategy following the start of the war in Ukraine and the sanctions against Russia, Rome's largest gas supplier, accounting for over 40% of imports.
In an attempt to diversify its gas supplies, Rome has sealed new deals with Algeria and has planned the construction of new gas infrastructures, a move that includes buying more LNG and setting up new regasification plants.
Italy’s industrial lobby Confindustria has warned of the risk of widespread company failures if energy prices keep surging this way. Confindustria is calling on the government to create a plan for rationing gas and to provide new subsidies to shield manufacturers.
Gas prices have recently climbed to over 320 euros per megawatt hour, three times the price recorded at the beginning of July and about 900% more compared to the same period a year ago. Businesses have slammed the rate as unsustainable while consumer groups have described it as an emergency.
In less than a month Italy will return to the polls, with a large number of electors expected to skip the vote. According to latest polls, 16 million Italians, accounting for 35% of Italy's 51 million voters, will not cast their ballot as their trust in politicians is wearing thin.