Southern Europe in April 2026: the most important developments in economy
In Southern Europe in April 2026 the economy was shaped by an energy shock linked to the Iran war and the disruption of traffic through the Strait of Hormuz. Italy rationed jet fuel at four airports and Prime Minister Giorgia Meloni prepared emergency energy measures after visiting Qatar and other Gulf states. After a truce with Iran was announced on 8 April, oil prices fell and the Milan stock exchange closed up 3.7%, but the Milan market slid again later in the month. Eni's chief executive Claudio Descalzi called on the EU to suspend its planned ban on Russian gas; Meloni voiced caution about revising it, while Deputy Prime Minister Matteo Salvini urged a return to Russian energy. Greece launched a fuel pass, and Spain imported a record amount of Russian LNG in March. Separately, on 15 April EU antitrust authorities raided the offices of Nutella maker Ferrero in two countries, and the company said it was cooperating.
Italy's outlook weakened. The IMF cut its 2026 growth forecast to 0.5% and S&P to 0.4%, while the OECD said the energy price shock would weigh on growth for two years. The deficit stood at 3.1%, which delays Italy's exit from the EU excessive deficit procedure to 2027. The tax burden reached 43.1%, an 11-year high, and consumer and business confidence fell further. Cyprus also faced a slowdown, according to the IMF.
In business, Eni announced a gas field of about 2 trillion cubic feet off Egypt and a further offshore find in Indonesia, and reported first-quarter adjusted net profit of 1.3 billion euros. Repsol signed a deal to regain control of its oil operations in Venezuela. Leonardo replaced its chief executive: Roberto Cingolani was not reappointed and Lorenzo Mariani was named. Ferrari priced its first electric car at around 550,000 euros. Delfin approved a 10 billion euro restructuring in which Leonardo Maria Del Vecchio raised his stake to 37.5%. Lufthansa and Air France-KLM bid for TAP Air Portugal, and Portugal asked both for binding offers. Commerzbank rejected UniCredit's takeover bid.
by WorldBrief & Maksim Micheliov | AI-generated summary
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