Italian Prime Minister Giorgia Meloni is advocating for sustainable, long-term solutions to tackle the escalating energy costs, emphasizing that recurrent emergency measures are insufficient for lasting relief. Speaking at the Assolombarda assembly in Milan, Meloni highlighted the Italian government’s allocation of over €60 billion in recent years to alleviate the burden on households and businesses. The measures have included reducing energy bill surcharges, adjusting fuel excise duties, and encouraging energy companies to manage prices.
Meloni pointed to geopolitical tensions such as those involving Iran, disruptions around the Strait of Hormuz, and instability in the Red Sea as factors escalating the costs of energy, raw materials, and transportation. These issues have fueled inflation, placing further strain on families, businesses, and public finances. She expressed concern that inflation-driven expenditures are constricting the fiscal space necessary for investment and economic growth, as dictated by EU budget rules.
In response, Meloni plans to urge European Union leaders to allow greater budget flexibility to accommodate the additional expenditures necessitated by these external factors. She intends to raise these concerns at the upcoming European Council meeting, seeking adjustments that account for inflation-driven public spending.
Additionally, Meloni called for reforms to the EU’s Emissions Trading System (ETS), arguing that the system’s costs could disadvantage European industries compared to international competitors. She underscored the need to protect domestic manufacturing, industrial supply chains, and jobs while still pursuing environmental objectives.
As part of Italy’s broader strategy to enhance energy security, Meloni noted that the country has expanded its renewable energy capacity and is working to bolster domestic oil and gas production. These efforts aim to create a more resilient and self-sufficient energy landscape for Italy.