Giorgia Meloni asks the European Commission for fiscal flexibility to support households and companies affected by expensive energy

Italian Prime Minister Giorgia Meloni has asked European Commission President Ursula von der Leyen for greater room to manoeuvre to finance temporary support measures for households and companies affected by rising energy prices.

In a letter seen by Euronews, Meloni warns that the prolonged crisis in the Middle East has put European energy markets under “extreme” strain. According to her, oil prices have risen by nearly 80%, while gas prices have increased by up to 156%.

The Italian prime minister argues that inflation automatically increases state revenues, including through VAT, but also public spending, such as indexed pensions. However, European fiscal rules limit the use of these additional revenues to offset energy costs.

Meloni is asking Brussels to take inflation-related spending into account, without treating it as discretionary spending increases. Italy has one of the highest levels of public debt in the EU and is subject to the excessive deficit procedure. The proposal is due to be discussed at the meeting of finance ministers on October 9.