Energy: ‘At these prices, businesses in Lombardy risk having to shut down’
Guido Guidesi, the regional councillor for Economic Development: ‘This is an emergency situation; immediate action is needed, alongside long-term solutions’
“If prices remain this high over the coming weeks, there is a risk that the Lombardy region’s system could grind to a halt. And that is a risk we do not wish to take.” The warning comes from Guido Guidesi, the Lombardy Region’s Councillor for Economic Development, who reiterates that the energy issue is currently the top priority for local businesses.
Councillor, what is the situation in the region?
The second-quarter economic data for the manufacturing sector showed an increase in turnover for businesses, but a further reduction in profit margins because production costs are too high. It is not just energy costs, but supply costs in general that have risen: the impact of road haulage, for example, is significant. The production system is stretched to the limit and is now at risk of snapping, particularly in the most energy-intensive sectors. This is an inflationary issue caused by energy cost surges that are higher than in 2022.
The year of the energy crisis caused by the war in Ukraine. What has changed since then?
Today we are starting from a position of higher costs compared to the baseline at that time. Our scope for action is therefore more limited. It is a truly worrying situation; we are Europe’s leading manufacturing region. At the moment, for someone like me who works with businesses, the energy issue is the only one that matters. If the situation persists, we will face serious difficulties, with the risk of production coming to a standstill and consequences for the national economy and beyond: a halt in business activity would also mean the use of social safety nets. Not to mention the risk that households will have to cut back on consumption to cope with energy costs. Unfortunately, since 2022, the issue has not been addressed, against a backdrop of constant waiting, uncertainty and indecision at European level. The Draghi report set out key measures, including transparency in the methodology for calculating energy prices. The Commission has done nothing. The problem is now an emergency, but it requires structural solutions: this is a situation that must not be allowed to happen again. Yet, beyond the geopolitical causes we are aware of, we lack the defences to protect businesses and households.
