PM Meloni to raise budget flexibility issue in EU — ANSA
Italian Prime Minister Giorgia Meloni said in Milan that at the upcoming European Council meeting she will personally once again raise the issue of greater budget flexibility due to inflation and high energy prices. She spoke at a meeting of the Assolombarda association, ANSA reports.
Costs due to inflation
According to Meloni, when approving national budget plans, Italy based its calculations on an inflation forecast of 1.8%, but the current rate is significantly higher. She noted that a substantial share of public expenditure is automatically indexed to inflation, creating billions of euros in additional costs without new government decisions.
The head of the Italian government believes that such costs reduce the fiscal space allowed by European rules and limit funds for businesses, investment and economic growth. She linked higher prices for energy, raw materials and transport to the crisis in Iran, the closure of the Strait of Hormuz and instability in the Red Sea.
Long-term solutions for energy
Meloni stressed that Italy and the EU need structural and long-term solutions in the energy sector in order not to depend on emergency measures. According to her, in recent years the Italian government has allocated more than €60 billion to protect the population from high energy costs.
More current news is available on the UA.News Telegram channel Telegram.
She also mentioned reducing charges in bills, eliminating the difference between gas prices in Italy and Europe, as well as the gas release and energy release mechanisms. Meloni said that installed renewable energy capacity has increased by almost 40%, while the country has stepped up extraction of its own oil and gas.
Criticism of the ETS system
The prime minister said that the EU must change its approach to containing energy costs. In her view, the ETS emissions trading system raises prices, creates imbalances between member states and harms European companies competing with producers not constrained by the same requirements.
As an example, Meloni cited the possible closure of a metallurgical enterprise in Lombardy and the purchase of steel produced in other parts of the world under lower environmental standards. She stressed that Europe's strategic autonomy depends on preserving steelmaking, foundry and chemical production.
