Italian Prime Minister Giorgia Meloni is calling on Brussels to ease EU fiscal rules to help member state governments cope with the economic shock caused by the war in Iran and the sharp rise in energy prices. This was reported by Politico, according to UNN.
Details
In a letter to European Commission President Ursula von der Leyen, reported Monday by the Italian newspaper Corriere della Sera, Meloni requested that "investments and emergency measures necessary to overcome the energy crisis" be excluded from the EU's Stability and Growth Pact. This mechanism obliges EU countries to keep their budget deficits below 3% of GDP.
"The crisis in the Middle East and tensions in the Strait of Hormuz, which add to the consequences of Russian aggression against Ukraine, are already having a very serious and often asymmetric impact on energy prices, as well as on costs for families and businesses,"
The Italian Prime Minister stated that just as EU fiscal rules do not account for defense spending, a similar approach should be applied to energy costs. She emphasized that "we must have the political courage to recognize that today energy security is also a strategic priority for Europe."
Meloni also stated that it would be difficult for Rome to justify participation in the SAFE defense financing program if Brussels does not show similar flexibility regarding energy costs. Italy proposes to temporarily expand the existing "national safeguard clause," which currently applies to defense investments, to include emergency energy measures.
As the publication notes, the Italian Prime Minister's appeal comes against the backdrop of a difficult budgetary situation. Last month, the European statistical office confirmed that Italy's budget deficit for 2025 exceeded the rules set by the EU. This occurred following Meloni's political defeat in a referendum on the judicial system and could force the government to limit spending ahead of an election year.
EU warns against energy crisis turning into fiscal crisis - FT06.04.26, 12:11
Since the escalation of the war in Iran on February 28 following joint US and Israeli strikes on Iranian targets, Europe has faced skyrocketing energy prices and fears regarding gas and fuel supplies. About 20% of the world's oil supply passes through the Strait of Hormuz.
At the same time, Brussels does not yet support significant policy changes to respond to the crisis. Earlier this year, the European Commission rejected a request from Austria, Germany, Italy, Portugal, and Spain to introduce a windfall tax on energy companies. On Sunday, the EU also signaled that it is not ready to grant Meloni's request.
European Commission spokesperson Olof Gill told Italian media that the EU has already offered governments "a range of options" to respond to the crisis. At the same time, he emphasized that the bloc is "not considering the national safeguard clause" as a tool in this case, as it seeks to remain within the bounds of "fiscally responsible policy."
EU could become record-dependent on US gas due to war in Iran - analysts13.05.26, 11:46