Italian Prime Minister Giorgia Meloni has emphasized the need for long-term strategies to combat rising energy costs, warning that short-term emergency measures are insufficient for sustainable solutions. Addressing the Assolombarda assembly in Milan, Meloni highlighted the substantial financial burden on the Italian government, which has spent over €60 billion to mitigate high energy expenses for households and businesses through various measures such as reducing energy bill surcharges and adjusting fuel excise duties.
Meloni pointed to geopolitical tensions, including those involving Iran and disruptions near the Strait of Hormuz, as factors exacerbating costs for energy, raw materials, and transportation. These issues have fueled inflation, placing further strain on families, businesses, and public finances. She warned that current EU budget rules, which do not adequately account for inflation-related public spending, are limiting fiscal space for necessary investment and growth.
In response, Meloni intends to advocate for more budget flexibility within the European Union, allowing governments to address costs arising from situations beyond their control. She plans to bring this issue to the forefront at the upcoming European Council meeting. Additionally, Meloni called for reforms to the EU’s Emissions Trading System (ETS), arguing that its costs could disadvantage European industries compared to global competitors. She stressed the importance of balancing environmental objectives with the protection of domestic manufacturing and jobs.
As part of Italy’s broader strategy to enhance energy security, Meloni noted efforts to expand renewable energy capacity and bolster domestic oil and gas production. These initiatives aim to reduce dependency on external energy sources and stabilize the national energy market.