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The six great challenges of Giorgia Meloni

2022-10-21 22:47:38Kosova&Bota SHKRUAR NGA ASSOCIATED PRESS
The six great challenges of Giorgia Meloni
Giorgia Melonit and her government allies

Giorgia Meloni, who accepted the mandate as Italy's next prime minister, will face a number of pressing problems once her government takes office.

The far-right leader of Italy's Brothers will need billions of euros to keep her election promises to cushion the impact of rising energy costs, cut taxes and block an increase in the retirement age that it is expected to enter into force in January.

ENERGY BILLS

Outgoing Prime Minister Mario Draghi has already earmarked 66 billion euros ($64.6 billion) this year for tax breaks and subsidies to help energy-intensive firms and poor households cope with high energy bills.

Those aid measures will expire in November, and just extending them for another month would cost €4.7 billion, the Treasury Department said in September.

ukraine

Ms Meloni has come out strongly in support of a tough line against Russia, backed by NATO and the EU, pledging to maintain Western sanctions and continue sending arms to Kiev.

It must decide whether to hand over air defense systems to Ukraine, as requested by Kiev.

BUDGET 2023

The timing of last month's national elections forced Italy to delay the 2023 budget law, which had been scheduled to be tabled in the Italian parliament until October 20.

Under an unchanged policy scenario set out in September, the Treasury sees the budget deficit at 3.4% of gross domestic product (GDP) in 2023, up from the April target of 3.9%.

Ms Meloni could restore the previous, higher deficit target to finance the new aid measures.

pensions

A temporary ruling allowing people to take a state pension when they are 64 expires in December, after which the age will rise to 67 under an unpopular 2011 reform that League leader Matteo Salvini, an ally of Mrs. Melonit in the right block, wants to change it.

Blocking the rise in the retirement age will add a bill to state pension spending, the second highest in the eurozone relative to national output, after Greece.

RECOVERY AND CONTINUITY FUND

Italy is eligible for around 200 billion euros in post-pandemic recovery funds from the European Union until 2026, but must pass a series of incremental reforms to ensure the money keeps flowing.

Mr. Draghi has so far secured almost 67 billion euros of EU funds. Roma now need to hit 55 new targets in the second half of 2022 to receive an additional installment worth 19 billion euros.

Ms Meloni must also speed up spending on EU funds after COVID-19, as Treasury data shows Italy is behind schedule.

NEW LNG TERMINAL

Ms Meloni will have to ensure that a new liquefied natural gas (LNG) terminal is quickly erected at the port of Piombino to be operational by the end of March.

The $400 million investment is part of a broader plan drawn up by the outgoing government to replace dwindling supplies of Russian gas.


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