Italy’s government is set to approve a budget plan extending to 2027 that includes an additional deficit of approximately €7 billion beyond its previous agreement with the European Union. Deputy Prime Minister and Foreign Minister Antonio Tajani announced that the government will seek increased fiscal flexibility for defense and energy expenditures before submitting the budget plan to Brussels for approval.
Economy Minister Giancarlo Giorgetti emphasized Italy’s intention to request the maximum flexibility permitted under EU rules. This includes allocations of 0.6% of GDP for energy security and 0.9% for defense spending. The Italian government argues that the need for increased fiscal space is driven by higher energy costs and burgeoning defense requirements.
Prime Minister Giorgia Meloni has also appealed to the European Commission for greater leeway in response to rising inflationary pressures. The Italian administration maintains that these economic challenges underscore the necessity for the proposed budget adjustments.
The European Commission has indicated that EU member states already have access to additional flexibility within the existing fiscal framework. Nonetheless, Italy must submit its spending proposals to Brussels to proceed with its plan for an increased deficit.