Italy: 17-Bln-euro Aid Package to Combat Inflation, Drought

On Thursday, Italian Prime Minister Mario Draghi announced an aid package worth an estimated 17 billion euros (17.3 billion U.S. dollars) to combat surging inflation and drought.

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As head of a caretaker government, Draghi announced that the Council of Ministers had just approved the latest aid package at his first press briefing after his official resignation as prime minister on July 21. He agreed to stay on as head of government in a caretaker role until a new government can be formed after a general election scheduled for Sept. 25.

Earlier this year, Italy already approved the 35-billion-euro economic assistance. Thus, the prime minister said that the two measures total more than 2 percent of Italy's gross domestic product.

Draghi said the decree was of "extraordinary proportions" and his goal was to "give the next government the successful achievement of all the targets" related to the European Union's more than 200 billion euros in coronavirus pandemic-related loans and grants.

According to Draghi, among the measures financed by the new package will be "the extension of billing and other measures related to fuel costs, a reevaluation of pensions, and tax cuts" beyond those financed by the first round of aid this year.