Energy transition comes with huge price tag -Italy business leader

Bonomi said he expected Italy's economy to grow by 6% this year

  
Flames come out of a domestic gas ring on a stove in Manchester, Britain, September 20, 2021. Image used for illustrative purpose.

Flames come out of a domestic gas ring on a stove in Manchester, Britain, September 20, 2021. Image used for illustrative purpose.

REUTERS/Phil Noble

ROME - Energy transition could cost Italy in excess of 650 billion euros ($760 billion) over the next decade and the government must do more to help businesses bear the cost, the head of the employers' federation said on Thursday.

"The national recovery plan provides only 6% of the investment needed for the transition. Almost 94% has to be covered by companies," Confindustria President Carlo Bonomi told the group's annual assembly.

Bonomi said he expected Italy's economy to grow by 6% this year after the deep recession caused by the coronavirus, but warned the increase in gas prices and commodities -- especially metals -- could slow the global economic recovery.

"We have to be serious in facing the problems that have fallen on international markets," he said.

Bonomi said the real challenge for Italy would be to maintain strong growth in the coming years, taking full advantage of around 200 billion euros coming from a European Union recovery fund to relaunch the bloc's battered economy.

"The real point is not the rebound of this year, but the growth rate from 2022 onwards, which must be solid and durable," he added. ($1 = 0.8530 euros)

(Reporting by Giuseppe Fonte, writing by Angelo Amante; Editing by Crispian Balmer) ((Angelo.Amante@thomsonreuters.com;))


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