Italy, through its Economy Minister, calls on the European Union for more flexible budget rules due to inflation and energy costs

Italy is calling on the European Union for a more flexible interpretation of budgetary rules amid accelerating inflation and rising energy costs. Economy Minister Giancarlo Giorgetti announced that he would raise the issue at this week's meeting of eurozone finance ministers.

Rome is not challenging European rules, but believes they should be adapted to current economic realities. Italy set its spending targets with Brussels based on an estimate of annual inflation of 1.8%. Meanwhile, the inflation rate rose to 4.1% in September, from 3.2% the previous month.

Giorgetti argues that this difference should be taken into account when the European Commission assesses any deviations from budgetary targets. The minister also cites developments in energy prices, which he says could reduce next year's economic growth by at least 0.2% of GDP.

The Italian government is due to approve the draft 2027 budget next week. The discussions are taking place in a European context marked by inflationary pressures, high energy costs and the need to keep public finances within the agreed limits.