Italy although taking a huge hit from the last week’s Saudi attack on oil fields has managed to somewhat cushion its economy with hope in lieu of new gas discoveries along Cyprus coasts.
New natural gas discoveries in the Eastern Mediterranean can prove to be a0020boon for the European Union’s efforts to move away from dependence on Russian energy supplies. In the current complex energy game between Europe and Russia, Italy can play a major role as an entry point for gas deliveries from Egypt, Israel, and Cyprus, despite the current Italian government’s stance of being polite towards the Russian kremlin. By the end of the year, the governments of Italy, Greece, Cyprus, and Israel are rumored to sign a multilateral agreement to build the EastMed pipeline, which promises to bring a natural gas revolution to Europe. Russia is currently the largest single provider of gas to the EU and supplies from the Eastern Mediterranean basin are seen as a viable alternative to state-owned Russian gas monopoly Gazprom. Currently, Russia accounts for around 40 percent of the European natural gas imports which is a very huge portion.
With these major changes set to take place the already crushed Italian economy has hopes to again rise from the ground up and also improve its energy situation with the new energy providers. Italy is also undergoing a renewable energy reform which is expected to strengthen the energy sector which has been declining ever since the economic crisis.