Meloni asks Brussels for fiscal leeway as energy shock squeezes Italy

Italian prime Minister Giorgia Meloni is urging the European Commission again to relax the EU's fiscal rules, saying that higher inflation due to soaring energy prices is squeezing households and businesses, according to a letter seen by Euronews.

Italian Prime Minister Giorgia Meloni is urging Brussels once again to give capitals more room to cushion households and companies from the latest energy-price shock, arguing that European Union fiscal rules are becoming increasingly restrictive as inflation drives up government spending.

In a letter addressed to European Commission President Ursula von der Leyen, seen by Euronews, Meloni said the prolonged Middle East crisis has left European energy markets “extremely tight,” with oil prices up almost 80% and gas up to 156%.

"Against this backdrop, the agreed net expenditure paths under the European fiscal framework leave limited room to alleviate the impact on households and firms without resorting to tightening measures at a time of significant downside risks for the economy," Meloni added.

Italy, which is heading to polls next year, holds one of the highest debt-to-GDP ratios in the EU, trailing only Greece, which has recently sought a similar appeal to relax fiscal rules with the Commission.

Copyright for this text belongs to Euronews.