Italian Prime Minister Giorgia Meloni has emphasized the need for structural, long-term solutions to tackle escalating energy costs, cautioning that repeated emergency interventions are insufficient for a sustainable resolution. Speaking at the Assolombarda assembly in Milan, Meloni highlighted the Italian government’s allocation of over €60 billion in recent years to protect households and businesses from soaring energy prices. These measures included reducing energy bill surcharges, adjusting fuel excise duties, and urging energy companies to cap prices.
Meloni pointed to geopolitical tensions, particularly involving Iran, instability in the Red Sea, and disruptions around the Strait of Hormuz, as factors driving up the costs of energy, raw materials, and transportation. These factors, she noted, are contributing to inflation and exerting pressure on families, businesses, and public finances.
The Italian Prime Minister also plans to advocate for greater budget flexibility within the European Union to accommodate inflation-driven public spending. She argued that inflation-related expenses are limiting the fiscal space available for investment and economic growth under current EU budget regulations. Meloni intends to bring this issue to the forefront at the upcoming European Council meeting, seeking leeway for additional costs arising from circumstances beyond national governments’ control.
Additionally, Meloni called for reforms to the EU’s Emissions Trading System (ETS), arguing that its costs could disadvantage European industries compared to international competitors. She stressed the importance of balancing environmental goals with the protection of domestic manufacturing, industrial supply chains, and jobs.
As part of Italy’s broader strategy to improve energy security, Meloni highlighted the expansion of the country’s renewable energy capacity and efforts to bolster domestic oil and gas production. These initiatives are aimed at reducing dependency on external energy sources and stabilizing the energy market in the long run.