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Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for measure IT-2023-1/3082 Updated – measures in Italy

Energy cost package

Pacchetto Caro Energia

Country Italy , applies nationwide
Time period Temporary, 01 January 2023 – 30 June 2023
Context War in Ukraine, Cost of Living Crisis
Type Legislations or other statutory regulations
Category Promoting the economic, labour market and social recovery into a green future
– Support for energy bills
Author Alessandro Smilari (Fondazione Giacomo Brodolini) and Eurofound
Measure added 18 February 2023 (updated 29 November 2023)

Background information

This package of measures is part of the Budget Law 2023, also called Law No. 197/2022. The Budget Law 2023 provides measures to contrast high energy costs and high prices. The government planned a series of household and business support measures to lessen the impact of high energy prices.

The percentages from a previous energy package are available in the related measure Energy bonus for enterprises .

Content of measure

The resources earmarked for measures against high energy prices amount to more than €21 billion and will make it possible to increase aid to households and businesses, while also broadening the range of beneficiaries for the first quarter of 2023.

Improper charges on utility bills will be eliminated and the tax credit for small businesses and activities such as bars, restaurants and shops will rise from 30% to 35%, and for energy-intensive and gas-intensive companies from 40% to 45%.

In addition, in 2023 the VAT rate is reduced to 10% for pellets and 5% for consumption associated with district heating for the first quarter of the year. The reduced VAT rate of 5% for the supply of thermal energy produced with methane gas under an energy service contract is also extended.

Approximately €2 billion is earmarked for the healthcare sector for 2023 (including energy costs), while around €1 billion is earmarked for local authorities, including resources for local public transport.

Updates

The following updates to this measure have been made after it came into effect.

18 May 2023

On 18 May, the 'Billing Decree' was enacted, which extended the expiry of the package until 30 June 2023, i.e. the second quarter of the year.

Use of measure

No data available.

Target groups

Workers Businesses Citizens
Does not apply to workers Sector specific set of companies
Companies providing essential services
SMEs
Applies to all citizens

Actors and funding

Actors Funding
National government
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role No involvement as case not in social partner domain No involvement as case not in social partner domain
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • No involvement
  • Main level of involvement: N/A

Involvement

No involvement.

Views and reactions

No reactions.

Sectors and occupations

    • Economic area Sector (NACE level 2)
      G - Wholesale And Retail Trade; Repair Of Motor Vehicles And Motorcycles G45 Wholesale and retail trade and repair of motor vehicles and motorcycles
      H - Transportation And Storage H49 Land transport and transport via pipelines
      I - Accommodation And Food Service Activities I56 Food and beverage service activities
      Q - Human Health And Social Work Activities Q86 Human health activities

This case is not occupation-specific.

Sources

Citation

Eurofound (2023), Energy cost package, measure IT-2023-1/3082 (measures in Italy), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/IT-2023-1_3082.html

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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.