Italian Prime Minister Giorgia Meloni has urged for long-term solutions to combat escalating energy costs, emphasizing that emergency interventions are not sustainable in the long run. At the Assolombarda assembly in Milan, Meloni highlighted the significant financial burden borne by the Italian government, which has spent over €60 billion in recent years to protect families and businesses from high energy expenses. This expenditure included measures such as reducing energy bill surcharges, adjusting fuel excise duties, and motivating energy companies to cap prices.
Meloni attributed the rising costs to geopolitical tensions involving Iran, disruptions in the Strait of Hormuz, and instability in the Red Sea, which have collectively driven up energy, raw material, and transportation costs. These factors have contributed to inflation, exerting pressure on Italian households, businesses, and public finances.
The Prime Minister plans to address these concerns at the forthcoming European Council meeting, advocating for greater budget flexibility within the European Union. She argues that inflation-related spending is constraining fiscal space for investments and economic growth under current EU budget rules. Meloni will seek allowances for additional costs that arise due to factors beyond the control of national governments.
In addition, Meloni called for revisions to the EU’s Emissions Trading System (ETS), positing that its expenses could disadvantage European industries compared to their international counterparts. She emphasized the necessity of safeguarding domestic manufacturing, industrial supply chains, and employment while advancing environmental objectives.
As part of Italy’s 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 are integral to ensuring a more stable and secure energy future for Italy.