The Prime Minister of Italy, Giorgia Meloni, has called for the European Commission to ease financial regulations so that member states can provide more support to companies and families, especially in the context of rising energy prices.
Concerns over rising energy costs
Meloni stated at a media event on Wednesday that she has written a letter to Ursula von der Leyen, the President of the European Commission, requesting discussions on this matter in upcoming Ecofin and European Council meetings. She said, "We believe that in the face of rising inflation due to high global energy prices, it is necessary to give member states more flexibility to support households and businesses."
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Economic challenges in Europe
European countries are suffering from rising energy costs due to the war in Iran and are concerned that these rising costs could harm fragile economic growth and lead to further inflation. According to preliminary data from the Italian Statistical Institute, inflation in Italy rose from 3.2% to 4.1% in September.
Meloni added, "I will write to President von der Leyen to ensure that this issue will be discussed at the Ecofin meeting taking place next week in Luxembourg, and then, of course, at the European Council meeting two weeks later."
Gasoline prices have become one of the biggest political issues in Italy in recent weeks, putting the government in a difficult position. Political parties are preparing for a campaign ahead of next year's national elections.
The Italian government has increased its spending to more than 3% of its GDP, thus violating the European Union's fiscal targets. Meloni has stated that her government intends to meet the 3% target next year, after failing to do so this year.
Several other countries are also currently exceeding the 3% threshold, and Meloni may find supporters in the European Council in her fight for more flexibility. The Prime Minister of Greece, Kyriakos Mitsotakis, also wrote to von der Leyen, Antonio Costa, the President of the European Council, and Kyriakos Pierrakakis, the President of the Eurogroup, criticizing the request to reduce energy consumption and calling for more fiscal space.
Meloni noted, "We have already raised this issue in the Ecofin meeting and have requested that higher inflation be considered in calculating European targets and permissible deficits."
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