Energy, “with these prices Lombard companies risk stopping”

Energy, "with these prices Lombard companies risk stopping"
The Lombardy Region Economic Development Councillor Guido Guidesi

“If prices remain this high in the coming weeks, there is a risk that the Lombardy system could stop. And it is a risk we do not want to take.” The warning comes from Guido Guidesi, Economic Development Councillor of the Lombardy Region, who reiterates that the priority for local businesses right now is the energy issue.

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Councillor, what is the situation in the region?

In the manufacturing business data for the second quarter, we saw an increase in turnover for companies, but a further reduction in margins because production costs are too high. It’s not just energy costs, but supply costs in general, which have undergone increases: for example, the impact of road transport is significant. For the production system, the rope is stretched to the maximum, and now it risks breaking. Especially for the most energy-intensive supply chains. It is an inflationary issue due to energy surcharges higher than in 2022.

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The year of the energy shock due to the war in Ukraine. What has changed since then?

Today we start from costs increased compared to the starting base back then. The scope of action is therefore more limited. It is a truly worrying situation, we are the leading manufacturing region in Europe. At this moment, for me who deals with businesses, the energy issue is the only one. If the situation persists, we will face serious difficulties, with the risk of stopping and consequences for the national economy and beyond: the halt of companies also coincides with the use of social safety nets. Not to mention the risk, for families, of limiting consumption to cope with energy costs. Unfortunately, since 2022 the issue has not been addressed, in a context of continuous waiting, uncertainty, and indecision at the European level. The Draghi report explicitly included fundamental interventions, including transparency in the methodology for calculating the energy price. The Commission has done nothing. Now the problem is an emergency, but it must find structural answers: it is a situation that cannot be repeated. Yet beyond the geopolitical causes we know, we have no antibodies to protect businesses and families.

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