Meloni Asks Brussels for Fiscal Leeway Amid Energy Crisis
Italian Prime Minister Giorgia Meloni is urging Brussels to grant fiscal flexibility as Europe grapples with an energy crisis. In a letter to European Commission President Ursula von der Leyen, seen by Euronews, Meloni highlighted the impact of soaring oil and gas prices.
The Middle East conflict has left energy markets 'extremely tight,' with oil up 80% and gas up 156%. Meloni argued that EU fiscal rules are restrictive in this environment, leaving limited room for governments to support households and companies without resorting to austerity measures.
Italy, which holds one of the highest debt-to-GDP ratios in the EU, is seeking a solution. Meloni proposed recognizing additional government spending as a result of inflation, rather than discretionary action, allowing part of that revenue to be used for temporary energy support.