Italian Prime Minister Giorgia Meloni is planning to reduce funding for the country’s automotive industry by about €4.6 billion between 2025 and 2030. This decision, included in the 2025 budget draft, has sparked intense backlash, particularly given the global slowdown in electric vehicle (EV) sales, partly driven by inconsistent green policies worldwide. Automakers, including Stellantis, the maker of Fiat, have had to adjust strategies due to these shifting incentives.
“This cut is an unacceptable surprise and sharply contrasts with the government’s ongoing efforts to support the industry in Europe,”
Stated the Italian automotive association ANFIA on October 28, 2024
Its general director, Gianmarco Giorda, noted that with pressing challenges like electrification, low demand in Europe, and reduced Italian production, such a decision undermines trust.
This shift marks a departure from former Prime Minister Mario Draghi’s 2022 commitment of €8.7 billion in automotive support through 2030. Meloni’s administration, led by Economy Minister Giancarlo Giorgetti, now aims to reallocate €4.6 billion of the initially planned €5.8 billion to other initiatives.
The proposed law still needs approval from both chambers of Parliament by December’s end, with potential adjustments possible. The largest cuts, about €2.4 billion, are scheduled for 2028-2030.
This budget reduction is likely to strain Rome’s relationship with Stellantis, Italy’s sole major automaker. Stellantis CEO Carlos Tavares recently noted that Italy has allocated far fewer resources than other EU nations to bolster its automotive sector.
