The Prime Minister: "Letter sent to von der Leyen". Economy Minister Giorgetti has once again asked for greater flexibility from the European Union in view of the budget at the end of the year. Brussels replies: "We have already granted more space with the extension of the use of the national escape clause." Meeting underway at Palazzo Chigi in view of the launch of the Public Finance Policy Document (DPFP)
We are once again talking about budget flexibility in the political debate, in view of the next budget. After the request made yesterday, Prime Minister Giorgia Meloni returned to the topic today, asking to evaluate the impact of inflation. Today the words of the Minister of Economy Giancarlo Giorgetti also arrived, who highlighted how the request for flexibility linked to inflation "was obvious. We have made some reflections" on a "purely technical" issue which however becomes of substance, that is, the spending path is a nominal spending path. We are respecting it, we are among the best. But the problem is that it contains an inflation rate which was programmed at the time by the Commission evidently much lower than what occurred".
Meloni: "Letter sent to von der Leyen, evaluate the impact of inflation"
"Among the priority dossiers we have on the table is greater flexibility to deal with the energy crisis," Prime Minister Giorgia Meloni told Cna. Now "with a letter that I sent to President von der Leyen today, we are raising the problem of the impact on public finances of inflation compared to planned inflation, it is a problem that all member states have, think about pensions, the single allowance, we cannot fail to take into consideration that it does not depend on the government's choices. We are not the only ones asking for it".
The reasons
The reasons that led the Prime Minister to ask for more flexibility were explained by Minister Giorgetti, who highlighted that with the current inflation rate "that spending path, given that there are items in the budget that are indexed to inflation, becomes difficult to maintain, but not for us, for everyone". The current inflation rate "should in some way be considered among the external factors. The famous relevant factors that are written there should be evaluated in this circumstance. It is a discussion that we have had with colleagues, I have also exchanged opinions with others. Let's see what the Commission will say", continued the minister.
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Meeting at Palazzo Chigi with Meloni and Giorgetti on accounts and maneuver
Meanwhile, a meeting is underway at Palazzo Chigi in view of the launch of the Public Finance Policy Document (DPFP), the update on public finances which will form the framework for the next budget and must in fact contain, as indicated by Parliament, also the cornerstones of the Budget law and could be accompanied by the report on the clause linked to energy and defence, if the government decides to activate it. At the table with Prime Minister Giorgia Meloni were the two deputy prime ministers and leaders of Lega and Forza Italia, Matteo Salvini and Antonio Tajani, the leader of Noi Moderati Maurizio Lupi and the Minister of Economy Giancarlo Giorgetti.
The Budget Law
On the topic of the next maneuver, Giorgetti reiterated that "it will be serious". However, deputy minister Maurizio Leo was more unbalanced in a meeting with the executive board of Confartigianato: "With all sincerity I must tell you it will be a difficult budget law. Due to the effect of inflation, due to the maintenance of public accounts, due to the effect of the public debt at the moment in which we go to issue the securities". The deputy minister then continued: "You have seen the spread, we have always kept it under control and due to the increase in energy it is reaching 100. We hope that the European Union understands this situation and comes to our aid, gives us more flexibility and this gives us a little more oxygen in making more targeted interventions". As the minister underlined, we cannot say "let's not be interested in maintaining public accounts and go overboard, even for laudable initiatives, not to squander money", instead "we really have to be prudent because the moment we take slightly more casual measures we risk a collapse for the State, remember what happened in Greece many years ago". Leo then underlined that other countries that have made large overruns "do not have a public debt like Italy" and "we need to see the repercussions they have".
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Europe's response on the energy issue
The response from the European Union also arrived shortly. "I can confirm that we have received the letter, the contribution from both Prime Minister Meloni and Prime Minister Babis, and we are examining it", declared the spokesperson of the European Commission, Paula Pinho, in the daily press briefing, regarding the document drawn up by Italy and the Czech Republic on interventions for the high energy cost which asks for greater flexibility. "It is normal, in view of the European Council in two weeks' time, to receive contributions, ideas and suggestions from Member States. So we are examining this issue, and the discussions will continue in the European Council," the spokeswoman added.
Europe's response on the Maneuver issue
Pinho herself, responding to a question on the Italian government's request for greater flexibility given high inflation, highlighted how "we have already granted greater flexibility to the member states". The European Commission's budget spokesperson, Balazs Ujvari, continued on the topic: "I would like to add that we have not yet received the letter, but of course we will keep an eye on it and inform you if the situation changes." Ujvari himself then continued: "We have extended the scope of application of the so-called national safeguard clause, initially foreseen for defence, also to energy, precisely to offer member states the budgetary space necessary to adopt measures to respond to the energy crisis we are facing". "This initiative - he specified - offers Member States the possibility of deviating from the so-called net expenditure path for an amount equal to 0.6% of overall GDP, in the period between February 2026 and the end of 2028. This is an additional fiscal space which can be used, provided that the relevant procedures are completed". Ujvari then concluded by underlining how "so far we have received indications from two Member States intending to move in this direction. One of them is Italy, from which we received a request for activation. It arrived a couple of weeks ago and is being examined by the Commission".
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