Meloni's Budget Ax Slashes Automotive Support, Sparking Controversy

Italian Prime Minister Giorgia Meloni plans to cut funds for the automotive industry by 4.6 billion euros between 2025 and 2030. This decision has triggered criticism from business groups and the opposition, amid concerns about the impact on Italy's carmaking sector and the green transition.

Italian Prime Minister Giorgia Meloni's decision to slash the automotive industry's funding by 4.6 billion euros between 2025 and 2030 has sparked widespread criticism. The budget move comes amidst declining electric vehicle sales, pressuring carmakers like Stellantis to adjust strategies.

Business lobby ANFIA called the cuts an 'unacceptable surprise' and a contradiction to the government's European efforts in the automotive sector. ANFIA Managing Director Gianmarco Giorda highlighted ongoing issues such as soft market demand and Italy's declining production.

The opposition has demanded Industry Minister Adolfo Urso's resignation over the anticipated cuts. Urso assured focus on production investments with an emphasis on components. Meanwhile, Stellantis aims to raise Italian output, contingent on government support, amid critiques of its international production shifts.

(With inputs from agencies.)