Well, let's try to connect with Emma Marcegaglia, we hope.
Good evening. Welcome. We can hear you and see you. Welcome. Thank you for joining Made in Italy, this new event on, precisely, Made in Italy and Italian economic capabilities. We began by discussing the context impacting Italy, including the geopolitical one. Among these, clearly, there are also the various challenges brought by the price of oil, which continues to rise. So the first question I would like to ask, a question that is undoubtedly as important for you as it is for all other entrepreneurs of large and small Italian companies, is how long can we endure, how long can they endure with such a high oil price?
Yes, thank you. I believe that this issue of the cost of oil—which ultimately means cost for businesses in general, and for energy-intensive companies like ours in particular, it means the cost of gas and electricity—is having an enormous impact. As we know, the cost of gas went from about €30 to €80 before the outbreak of the war and what happened in the Strait of Hormuz; today it is a bit lower, 73-75, so you understand, it's enormous. The cost of electricity has risen by 50-70%. And what's more, let's say that in the first half of the year this impact was felt less because it averaged lower prices from the beginning of the year. In the second half, especially in the last quarter, the Q4 we are approaching and starting to enter, the impact is enormous, isn't it? I have also seen cost increases of 20-30% on the total, let's say, production costs compared to the first part of the year. So the impact is enormous.
I think that if this situation were to persist for a long time, it could lead to a very significant impact. On one hand, obviously, a reduction in margins for companies, and in some cases, for particularly energy-intensive or gas-intensive companies where there is very high gas consumption—I'm thinking of ceramics, paper, or others—we are already starting to see some companies occasionally reducing production or even thinking about stopping production at least until this situation persists. So the answer to your question is that the impact is enormous, and I don't believe we can resist much longer without some industrial policy decisions that can support, above all, this type of business in a situation like this. Therefore, I believe swift actions are needed in this regard.
And in your opinion, are the actions the government is taking sufficient? Considering that our resources are limited—we shouldn't hide that from ourselves anymore—and we have our budget constraints, which fortunately we respect because the markets recognize it, what can a government really do concretely with energy costs this high?
Well, look, this clearly wouldn't—what I'm saying now wouldn't have an immediate impact, but if the situation were to persist, right? Because the issue is also whether the Hormuz Strait were to be unblocked, right? Various forecasts say that with the oil stocks we have today, and the current situation, it would probably take a few months. Some people even say a few years, right, to return to a normal situation. So, if we are facing a situation that persists, the first thing to do is to unblock all permits for renewables. Today, renewables are an interesting, less expensive alternative for autonomy, so we don't depend on gas imports. So, this is the first thing. As you know, there are still many permits blocked, either by the Ministry of the Environment for environmental impact assessments or by the regions. So, the first priority is certainly to work on that.
The second thing—and I believe the government has already made some openings from this point of view—is, let's say, to expand what is called energy release, right? Or gas release in this case, but let's say energy release, which as you know the government has already moved forward with, which I think is a smart move because it says: you, the company, today, for the next one, two, or three years, will have a capped price for electricity, but in exchange, you must commit to investing and building new renewable capacity. So this is an interesting topic in my opinion because today companies get some relief from costs, but they invest to then give the country greater renewable capacity. So I think this could be something to do, to renew. The government is already talking about it, and then perhaps, specifically regarding companies with high gas consumption, I think some help is needed there, because we are starting to see companies saying: "I can't take it anymore and I'm suspending production." So, being well aware of the issue of deficit and debt, I strongly agree with what you were saying, that today Italy stands out from other countries precisely because it demonstrates the ability to keep the deficit in check, but we also need to do some things that help and support businesses in such a difficult moment.
Therefore, market solutions. You are talking about creating and using more, incentivizing the use of renewables, but how do we get to that usage, since there are clearly various forces at play that keep preventing progress, blocking it in a certain sense?
