Italy's Budget Issues Delay Help for Earthquake Victims

In Amatrice, reconstruction efforts have finally gained momentum after years of delays, with new buildings rising where homes once stood. However, approximately half of the town's residences remain unrepaired, and the historic center is still a devastated landscape, marked by a solitary clocktower amidst rubble. The Italian government has allocated around €400 million to aid towns affected by the 2009 and 2016 earthquakes, aiming to expedite the rebuilding process. Despite the financial support, the demand for construction has led to soaring material costs, complicating the recovery. Recently, a second construction firm has joined the effort, but many structures, including the Don Minozzi house, remain in disrepair three years later. In 2023, the government imposed a deadline for new applications and curtailed a program allowing homeowners to transfer tax credits, which has become crucial for funding reconstruction. Senator Guido Castelli noted that up to 20 percent of the rebuilding relies on the Superbonus scheme, which has contributed to Italy's budget deficit reaching 7.4 percent of GDP in 2023. This financial strain has raised concerns about meeting the 2025 deadline, which could hinder many projects due to the extensive damage requiring more complex planning than typical renovations. Local contractor Galli, representing a consortium of homeowners, expressed frustration over the challenges faced, highlighting that his firm, Matrix, has lost around €30 million while only recovering a fraction of that amount. He criticized the use of the Superbonus for reconstruction, emphasizing the need for a more effective approach to restore the community.