On eve of legislative elections, Italian economy under test of energy crisis

While the extreme right of Fratelli d’Italia could win the majority of votes during the general elections of September 25, the country, weakened by strong inflation, remains undermined by structural economic problems.

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When he talks about his country, Luigi Consiglio is always inexhaustible. And above all very proud: “Political crises? The covid? No problem: the Italian industrial fabric is among the strongest in the world, nothing can kneel”, boasts this entrepreneur, president of Gea, a Milanese cabinet supporting the Italian SMEs in their international development. For the past few weeks, however, his confidence has fallen. Many of family companies making the Northern Industrial Force are increasingly difficult to deal with the outbreak of energy prices. “Some are short of cash to pay the bills, it’s very worrying,” he says, suddenly dark.

He is not the only one. “Between the drop in the Russian market, the leap of prices and the logistical disturbances linked to Chinese confinements, our territory is penalized and plagued by doubt,” deplores Giovanni Dini, of the National Confederation of Crafts of the Region des Marche, Rich in small businesses working in fashion, mechanical production and food processing. “We are faced with an economic earthquake,” said Carlo Bonomi, the boss of the Confindustria, the Italian Medef, the 1 September, on the Italian radio RTL 102.5. Before warning: “We cannot wait two months, the time it should take so that we have a new government”.

After the resignation on July 21 of Mario Draghi, the former president of the European Central Bank (ECB) who had brought together a government of “Grande Coalition” in February 2021, the Italians went to the polls on September 25 to renew their parliament. “The result of the ballot is little doubt: the far -right party Fratelli d’Italia, carried by Giorgia Meloni, should arrive at the top”, prognostic Marcos Carias, economist area Euro at Coface. This training should be able to form a coalition with the (far right) league of Matteo Salvini and Forza Italia (Liberal right) by Silvio Berlusconi. “The parenthesis Mario Draghi closes, and that will have serious consequences on the economy,” said Franco Pavoncello, professor of political science at John Cabot University, in Rome.

continuity in reforms?

Look closely, Italy has however, despite the difficulties wiped by companies, rather well resisted the energy crisis – at least, so far. In the second quarter, the gross domestic product (GDP) thus increased by 1.1 %, against 0.5 % and 0.1 % respectively in France and Germany. Consumption even jumped 2.6 %.

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/Media reports.