Meloni Seeks EU Relief as Italy Faces Energy Crisis

Italian Prime Minister Giorgia Meloni says there is limited scope under EU rules to curb inflation. She believes that part of the additional revenue generated by higher inflation should be used to temporarily and selectively mitigate energy costs.

Meloni has confirmed her intention to utilize the full 14 billion euro extra deficit provided for under the national safeguard clause for Italia, which is expected to focus on defence budget 'sacrifices' to reach an agreement with the EU. The energy sector had been crucial for the government since spring negotiations.

Meloni aims to bring about a structural reduction in energy prices for businesses and households through two-pronged approach: scrapping car tax by 2027, discounts granted by major oil companies, and channeling additional resources from the safeguard clause towards businesses. The simplifications under the Single Economic Zone (ZES) will also be extended.

Meloni has endorsed Confindustria president Emanuele Orsini's call for the EU to 'wake up' and abandon ideology. She contrasts the six proposals agreed on Tuesday in Prague with Czech Prime Minister Andrej Babiš, saying that burdening manufacturing companies with additional environmental taxation will undermine their ability to compete globally.