EU Economy Commissioner Paolo Gentiloni presented the Winter 2022 Economic Forecast yesterday and said, among other things: “Indications from future contracts show that energy prices are now set to remain high for longer and price pressures are broadening to several categories of goods and services.” Gentiloni forecast a 3.9% inflation rate in the EU for 2022 (a clear underestimation) but had no recommendation on how to protect citizens from inflation. Instead, he said that the good news is that labor costs won’t increase as most contracts have been signed already.
Meanwhile, 3,000 Italian municipalities, including major cities such as Rome, Milan, Turin, Florence, Naples, turned lights off in public buildings and monuments in protest against energy price increases from 8-9 p.m. yesterday. Mayors issued statements complaining that the money so far made available by the Draghi government to alleviate the energy and electricity bills is thoroughly insufficient. Municipalities spokesman Antonio DeCaro said cities will run out of money to keep lights on in May.
The Draghi government has promised more money. However, anything short of €30 billion will expose producers and consumers to bankruptcy.
