(Bloomberg) -- Mario Draghi is expected to push through a new energy aid package to families and businesses worth about 13.5 billion euros ($13.5 billion) a week before Italy’s general election.

The new measures aimed at protecting companies and citizens from the latest surge in energy costs will include an extension of tax breaks for both companies and citizens and the possibility of paying energy bills in installments, according to people familiar with the matter.

The Italian government has spent over 50 billion euros so far to protect the economy, and more may be needed soon as high fuel and energy costs along with continuing uncertainty following Russia’s invasion of Ukraine weigh on growth.  

The approval of the current aid package has been slowed by complex political negotiations, highlighting the government’s growing weakness as it prepares to close shop ahead of the Sept. 25 vote. Such squabbling has also delayed the final approval of a previous package of aid measures, which are stuck in parliament. 

Tensions mounted on Tuesday after lawmakers voted a last-minute amendment aimed at abolishing an upper limit to public officials’ salaries. Draghi is determined to ensure the upper limit on salaries will be kept and has asked as a condition to unlock the funds the approval of a further amendment which once again introduces the limit.

It couldn’t be a worse time to stall. The country faces soaring inflation, slowing economic growth and needs to keep in check Italy’s mammoth debt, which currently stands at around 150% of gross domestic product. 

Italy’s Next Leaders Face Grim Outlook as Draghi Stint Nears End

Brothers of Italy leader Giorgia Meloni -- whose right-wing coalition was leading polls before a blackout period that began earlier this week -- has promised to keep the country’s finances under control, and not increase the deficit. 

But much of that will depend on the composition of her coalition and how much power she can wield over Italy’s traditionally litigious lawmakers.

 

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