Meloni Urges EU to Allow Budget Flexibility Amid Rising Energy Costs

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Italian Prime Minister Giorgia Meloni has warned that continuous emergency interventions are insufficient to address the ongoing rise in energy costs, calling instead for structural, long-term solutions. Speaking at the Assolombarda assembly in Milan, Meloni highlighted the Italian government’s efforts, which have included more than €60 billion dedicated to reducing energy bill surcharges, adjusting fuel excise duties, and encouraging energy companies to cap prices.

Meloni pointed to heightened geopolitical tensions involving Iran, disruptions near the Strait of Hormuz, and instability in the Red Sea as factors driving up the costs of energy, raw materials, and transportation. These issues, she noted, contribute to inflation, which is putting additional strain on families, businesses, and public finances in Italy.

As part of her strategy, Meloni plans to urge European Union leaders to allow greater budget flexibility to accommodate inflation-driven public spending. She argued that current EU budget rules limit the fiscal space available for investment and economic growth, especially as nations face costs arising from circumstances beyond their control. Meloni intends to address these concerns at the upcoming European Council meeting.

Additionally, Meloni called for reforms to the EU’s Emissions Trading System (ETS), suggesting that its current costs could disadvantage European industries compared to international competitors. She emphasized the need for protecting domestic manufacturing and industrial supply chains while still pursuing essential environmental goals.

In terms of domestic policy, Meloni stated that Italy is working to increase its renewable energy capacity and strengthen its oil and gas production, steps she believes will enhance the country’s energy security. The Italian Prime Minister’s comments highlight a broader strategy aimed at ensuring long-term energy stability and economic growth amid global uncertainties.

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