Italy plans to spend approximately 1 billion euros ($1.16 billion) to curb rising energy bills for households and businesses, Prime Minister Giorgia Meloni announced on Friday. The move is part of broader efforts to stimulate economic growth and maintain energy security in 2026.

Government Action to Stabilize Energy Costs

Speaking at her annual New Year’s press conference, Meloni highlighted the Italian government’s ongoing commitment to support families and firms struggling with energy expenses. She stated:

“This government has spent several billion to keep energy prices down. The last decree was six months ago, for about three billion euros, and we are drafting another one to set aside one billion in the coming weeks.”

The funding will be directed at measures designed to limit energy cost increases, including subsidies for electricity and gas, and potential tax relief for small and medium-sized enterprises affected by high utility bills.

Focus on Growth and Security

Prime Minister Meloni emphasized that economic growth and national security will remain key priorities for her government in 2026. She also suggested that official economic statistics may be underestimating Italy’s growth, forecasting upward revisions for GDP data from 2024 and 2025.

Italy’s statistics bureau, ISTAT, revised 2023 growth from 0.7% to 1.0%, and Meloni expressed optimism that similar adjustments may be made for the following two years.

Context: Energy Costs in Italy

Italy, like many European countries, continues to face volatile energy prices due to global supply chain disruptions, geopolitical tensions, and shifts toward renewable energy sources. Government interventions, such as price caps and subsidies, aim to shield households and businesses from sudden spikes in electricity and gas costs.

Meloni’s latest announcement reflects the government’s commitment to economic stability and energy affordability, ensuring that Italy’s citizens and companies can better navigate ongoing global energy uncertainties.