ROME: Italian Prime Minister Mario Draghi announced an aid package worth 17 billion euros to combat surging inflation and drought.

As head of a caretaker government, Draghi announced that the Council of Ministers had just sanctioned the latest aid package at his first press briefing on Thursday after his official resignation on July 21, as per reports.

Earlier this year, Italy had approved the 35 billion euro economic aid package. Thus, together the two measures total more than 2 percent of Italy's gross domestic product, Draghi said. He agreed to stay on as head of government in a caretaker role until a new government can be set up after a general election scheduled for September 25.

The future government will get "the successful achievement of all the targets" pertaining to the more than 200 billion euros in loans and grants from the European Union for the coronavirus pandemic, he said, adding that the order was of "exceptional dimensions."

Draghi said that the latest package will fund additional measures beyond those covered by this year's first round of aid, including "the extension of billing and other measures connected to fuel costs, a re-evaluation of pensions, and tax savings."

The prime minister also promised cash for specific local and regional initiatives, a 200-euro incentive for independent contractors, and "steps to protect farmers against drought."

Italy has been hurt by rising costs brought on by the conflict between Russia and Ukraine, which has increased the price of petroleum globally, increased the cost of food, and disrupted supply lines.

Prices were 7.9% higher at the end of July than they were a year earlier, and in June they were 8% higher, which was the largest increase in Italy since the introduction of the euro.

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