Energy Bonuses: Are They Effective?

by Ahmed Ibrahim World Editor

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Italy’s Energy Crisis: A €55 ‘Warm Diaper’ Band-Aid on a Deepening Wound

A meager €55 energy subsidy planned for 2026 is drawing sharp criticism as a symbolic gesture that fails to address Italy’s escalating energy costs and widening social inequalities. The measure, targeted at approximately 4.5 million “vulnerable” families – those with an ISEE under €15,000 and families with four children up to an ISEE of €20,000 – is being dismissed by analysts as woefully inadequate.

The latest government intervention continues a pattern of “one-off” bonuses designed to quell public discontent, rather than enact lasting structural change. As one observer bluntly put it, the €55 contribution is barely enough to cover a couple of summer electricity bills with occasional air conditioning use. Concerns are also raised about potential inefficiencies, with the possibility that funds could reach individuals who do not genuinely require assistance, given the prevalence of tax evasion within Italy.

From Emergency to the New Normal

The current approach reflects a broader trend: a “permanent emergency” mentality that has characterized energy policy in recent years. Each administration, it truly seems, resorts to temporary fixes rather of tackling the root causes of rising costs. This short-termism is particularly evident when examining the trajectory of energy prices. Consumer advocacy group Codacons highlighted that electricity tariffs for vulnerable households are projected to increase by 8.6% in the final quarter of 2025 compared to the same period in 2024. Looking further back, the increase since 2020 is a staggering 49.7%.

“You don’t need to be an economist to understand that €55 doesn’t shift the center of gravity of families’ energy spending by a millimeter,” a senior official stated. The analogy of offering a glass of water to someone crossing a desert aptly illustrates the limited impact of the subsidy.

Did you know? – Electricity tariffs for vulnerable households in Italy are projected to increase by 8.6% in the final quarter of 2025 compared to the same period in 2024.

A Step Backwards in Support

The planned €55 bonus represents a notable reduction in support compared to previous measures. The National Consumers Union points out that in 2025, an extraordinary bonus of €200 was available to families with an ISEE up to €25,000. The current proposal not only reduces the amount by nearly 75% but also narrows the eligibility criteria.This rollback comes at a time when families are desperately seeking stability amidst persistent economic uncertainty.

Pro tip: – Be aware that governments often favor short-term, visible benefits (like bonuses) over complex, long-term reforms to secure electoral support.

The politics of Perception

The reliance on one-off bonuses isn’t simply a matter of policy; it’s a calculated political strategy. Governments favor immediate, visible measures because voters tend to prioritize short-term benefits. This phenomenon, known as short-termism, prioritizes securing electoral support over implementing complex, long-term reforms.

A structural reform, while possibly more effective, may take years to yield results – potentially after a different administration is in power. A bonus, conversely, delivers an instant benefit that can be directly attributed to the current government. This is a clear case of credit-claiming, where politicians seek to take ownership of positive outcomes. Direct transfers, such as the €55 subsidy or the government’s “Dedicated to you” prepaid card, are easily communicated and quickly reach citizens’ pockets.

Reader question: – Why do Italian governments rely on “one-off” bonuses instead of long-term solutions? The answer lies in political strategy – bonuses deliver immediate benefits that can be directly attributed to the current administration, aiding in re-election.

Exploiting Selective Memory

This strategy also leverages the voter’s selective memory. Political scientists have long observed that people tend to remember recent, tangible, and simple events more vividly than complex legislative processes or effects that unfold over time. Consequently, governments repeatedly employ the same formula: temporary measures with high symbolic impact that fail to address underlying structural issues.

This approach may prove effective in securing consensus, but it does little to ensure the long-term economic sustainability of the contry. The cycle of emergency measures and short-term fixes continues, leaving Italy vulnerable to future

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