Italy lambasts Germany's protective energy plan

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As Germany recently announced earlier its 200 billion euro ($194-billion) plan to help businesses and households from rising energy prices, Italy's outgoing PM Mario Draghi and Giorgia Meloni found fault in the plan while calling for Europe to come together in solidarity.

"Faced with the common threats of our times, we cannot divide ourselves according to the amount of room in our national budgets," said Draghi in a press statement on Thursday.  

Yesterday, Germany announced a 200-billion-euro ($194-billion) package with the aim of "protecting households and businesses" from surging energy prices. Germany's Finance Minister Christian Lindner had told reporters that Germany is in the midst of an "energy war over prosperity and freedom" with Russia, adding that the package is a "crystal clear answer to Putin that... we are strong economically".

Draghi told reporters that "The energy crisis requires a response from Europe to reduce costs for families and businesses, to limit exceptional gains made by producers and importers, to avoid dangerous and unjustified distortions of the internal market, and to keep Europe united once against in the face of an emergency."   

On Friday, the Italian Minister for Ecological Transition Roberto Cingolani reaffirmed Rome's support for an EU-wide cap on the price of gas.  

"Everyone has recognized that there is a priority at the moment, which is to bring down the cost of gas. But there is also a second priority, to avoid in doing so creating a shortage of gas," Cingolani said.  

Draghi has likewise been supportive of this proposal. His possible successor, Giorgia Meloni, whose far-right Brothers of Italy party won elections last Sunday, also expressed a similar stance.  

Ahead of Friday's meeting, she expressed positive views about the price-cap suggestion. She also criticized Germany and called for a common EU response to the energy crisis.  

"We need a common solution at the European level to help firms and families," she said. "No member state can offer effective and long-term solutions on its own in the absence of a common strategy, not even those that appear less financially vulnerable," she said.

Read more: Germany's gas dependency blamed on Russia: German FM

According to S&P Global Ratings, Italy and Germany are now the two largest European countries most exposed to a gas supply shock due to their extensive use of natural gas and significant reliance on Russia.

Surging costs of power linked to gas prices have already stunted the production of various industries, such as fertilizers and aluminum manufacturers, and prompted EU governments, such as Germany, to increase their spending by billions in order to help their citizens.

The German Federal Statistical Office Destatis released Thursday provisional data revealing that inflation in Germany is expected to rise to a record high of 10% in annual terms in September, up to 7.9% a month earlier.

On September 10, the General Confederation of Italian Artisans (CGIA), an Italian trade union, revealed that households and companies are losing an extra 82.6 billion euros ($83.8 billion) over the surging electricity and gas prices.

The CGIA also said that the government is likely to pass an $83.8 billion relief package to tackle the soaring costs of energy, the union revealed.

On September 11, Roberto Cingolani told the Italian newspaper la Repubblica that "Capping only Russian gas makes no sense. It is currently delivered to Europe in very small quantities."

"In any case, we should give a signal to all producers. Europe imports three-quarters of pipeline natural gas. It is fair that it, as the world's largest buyer, should help set the price to protect businesses and citizens," he added.

Experts predicted that the energy crisis to further worsen since the G7 agreed in September 3 to impose a price cap on Russian oil. 

Read more: Draghi comforts EU, new government policy to remain same: Reports