Wars, energy, and credit: Sardinian businesses will face a bill of nearly four billion in five years.
Confartigianato Sardegna raises the alarm: "An economic pressure that's affecting company balance sheets." Missed opportunities due to additional costs.
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Since 2022, Sardinian businesses have been hit by wars, energy crises, trade tensions, and rising interest rates, amounting to nearly €4 billion. This represents a devastating blow to the regional economy, impacting residents, businesses, and development for the past five years. These figures emerge from an analysis by the Research Department of Confartigianato Imprese Sardegna on the impact of geopolitical shocks on Italian regional production systems, based on data from Istat, Mase, Terna, and the Bank of Italy.
The €3.866 billion impact on the island's economy, equivalent to 1.80% of the average annual GDP over the five-year period, includes three components: higher energy import costs, higher financial burdens borne by businesses, and lower exports to markets affected by international tensions. This impact is lower than the Italian average of 2.71%, and slightly lower than that of Southern Italy, which is 1.87%. On the island, 72.4% of the economic impact is attributable to higher energy import costs, compared to the national average of 44.1%. Financial burdens account for 19.6%, while lower exports account for 8%. This exposure once again highlights how energy costs affect the competitiveness of Sardinian businesses, particularly smaller ones, which are less able to absorb increases in production costs.
"These numbers tell us that Sardinian businesses are facing economic pressure that isn't the result of their own choices, but rather from a succession of international crises that are directly impacting their balance sheets," comments Giacomo Meloni, president of Confartigianato Imprese Sardegna . "The figure that concerns us most is the impact of energy, which on the island accounts for over seven-tenths of the overall impact. For a small business, an increase in their energy bill isn't simply an additional expense: it means fewer resources to purchase machinery, hire staff, innovate, and plan for the future . We can't ask small businesses to tackle an energy transition alone, as it risks becoming a further competitive disadvantage. Artisan businesses and micro and small businesses need energy at sustainable prices, a more balanced tax system, and accessible financial tools to invest in efficiency and self-generation."
In recent months, the overall increase in electricity costs for micro and small businesses compared to the European average has reached €103 million, an increase equivalent to 0.25% of the regional GDP, placing Sardinia fourth in the country in terms of the incidence of this extra cost. The regional breakdown shows Cagliari leading the way with €37 million, followed by Sassari-Gallura with €29 million, Southern Sardinia with €18 million, Nuoro with €11 million, and Oristano with €7 million. A comparison with the rest of Italy confirms the scale of the problem: Italian micro and small businesses incurred €3.7 billion in excess electricity costs compared to the European average. The price of electricity for small Italian businesses reaches 25.99 cents per kWh, compared to the EU average of 22.04 cents, a 17.9% disadvantage. Excise duties and general system charges, which are 47.4% higher than the European average, further weigh on the cost. For companies with annual consumption of less than 20 MWh, the tax differential reaches as high as 75.5%.
Alongside energy, the report highlights the burden of financial costs, which in Sardinia account for 19.6% of the overall impact. Rising interest rates risk curbing investment precisely at a time when businesses must navigate the dual digital and energy transition. "Credit is essential for the growth of our companies," Meloni continues. "If financing an investment becomes more difficult and costly, businesses postpone purchases, slow down innovation projects, and lose development opportunities. We must ensure that the combination of high bills and expensive financing does not penalize, above all, smaller businesses, which are the economic and employment backbone of our regions."
Confartigianato Sardegna calls for coordinated interventions on energy costs, taxation of bills, access to credit, and investments in energy efficiency. This strategy must involve the government, the regional government, the banking system, and European institutions.
(Unioneonline)
