MNI: Italy To Increase Funds For Investment In Budget Update

Italy will increase support measures for business by EUR3.5 billion in a late budget adjustment, with funds coming from reallocation and reprofiling of previously-assigned resources, sources close to the matter told MNI.

Most of these funds will be aimed at bolstering investment incentives and cushioning the impact of higher-than-expected construction material costs, officials said.

Around half of the EUR3.5 billion will reinforce Italy’s tax credit programme for digitalisation and energy-efficiency investment, sources said, adding that this comes partly in response to business lobbies' demands for measures to incentivise growth.

The original funding envelope for the digitalisation and energy-efficiency programme has already been exhausted following applications well in excess of initial budget allocations, and officials wish to ensure that companies which had already planned or begun eligible investment projects are not left without access to the tax credits.

The rest of the money will be directed towards Special Economic Zones, particularly in the south of the country, to provide continuity of investment incentives in that area.

The changes add to a series of last minute amendments that have delayed the approval of the budget for Tuesday Dec 23, seven days before the end-of-year limit. (See MNI: Rome To Downgrade Support For Kyiv In Gesture To Trump)