In the Italian case, the amount of spending directly affected by inflation significantly higher than the forecasts underlying the budget plan is equivalent to 20.4% of GDP. Other spending components that will be affected by the increase in inflation already in 2027 represent 12.0% of GDP. Prime Minister Giorgia Meloni writes this in the letter sent today to the EU Commission.
"We believe that the fiscal framework leaves the European Commission - underlines the Prime Minister - a margin to take into account the relevant factors in the ex ante evaluation of compliance with the spending rule, as part of the examination of the upcoming budget planning documents".
"The agreed paths for net spending within the European fiscal framework - states Meloni - leave limited space to mitigate the impact on families and businesses without resorting to restrictive measures, at a time characterized by significant downside risks for the economy".
"As you know - writes Meloni addressing Ursula von der Leyen -, the temporary increase in indirect tax revenues resulting from the increase in inflation cannot be used to finance compensatory fiscal measures, unless a Member State has margins within the agreed net expenditure path". And she continues: "In fact, such support measures are classified as discretionary changes in revenues. Although this feature of the EU fiscal rules is aimed at making public finances sound in the medium term, we should still look for ways to use at least part of the additional revenues in order to temporarily and in a targeted way mitigate the increase in energy costs", indicates the Prime Minister
Meanwhile, Meloni has convened a center-right meeting in the afternoon at Palazzo Chigi in view of the approval of the public finance planning document and to explore the government's strategy in the face of the new international economic framework, characterized by inflationary pressures and rising energy costs. Sources from Palazzo Chigi explained this at the end of the meeting which lasted about two hours.
At the center of the discussion, in particular, was Italy's request to the European Commission to recognize the impact of the additional expenses caused by the increase in inflation and the issue of high energy costs which has been under the government's attention for some time. The priority objective for the executive, it is explained, is to contain the impact of the increase in costs on families and businesses, while supporting the competitiveness of the production system. 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.
Brussels' response to Rome on flexibility
"We have already given more flexibility to the member states": this was said by the spokesperson of the EU Commission Paula Pinho, asked during the meeting with the press about Italy's request for greater flexibility in light of the high levels of inflation, before receiving Meloni's letter.
In the afternoon Giorgia Meloni, at a Cna event, announced that she had sent the letter that day. "Among the priority dossiers we have on the table, so much so that when I'm finished with you I'll deal with this, there is greater flexibility to deal with the energy crisis", he reiterated. 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".
Temporary measures to reduce the impact of the costs of the ETS system on energy prices, greater flexibility in the allocation of quotas and postponement of the entry into force of ETS 2 for transport and buildings. These are some of the proposals that Italy and the Czech Republic are putting forward to deal with "the current energy shock" in a joint document, received yesterday by the EU Commission in view of the EU Summit on 15 and 16 October. "A suspension of the ETS would provide relief to the industry" but "in the absence of support, it is worth considering a series of targeted alternatives", reads the paper, seen by ANSA.
The energy crisis "has lasted longer than we expected and the next few months will be difficult". This is why Greece asks the European Commission for "further flexibility" in the economic governance framework "to allow Member States to adopt support measures for citizens and businesses, while safeguarding fiscal sustainability". This can be read in the letter that the Greek Prime Minister, Kyriakos Mītsotakīs, addressed to the President of the EU Commission, Ursula von der Leyen, a copy of which ANSA has seen. Among other things, the prime minister of Athens asks to evaluate "the exclusion from the net expenditure indicator" of the temporary measures adopted by member states "within certain limits", taking into account "also the additional VAT revenues generated by the unexpected increase in general price inflation triggered by energy inflation", we read in the letter.
EU: 'High-level contacts with the US on oil and diesel supplies'
The EU Commission is in "contact with member states and the US administration" on a possible release of oil stocks. A spokeswoman for the European executive said this at the press briefing on possible contacts with the USA to urge the release of US diesel stocks to avoid an export ban by the USA.
"Tomorrow there will be an important meeting of the governing council of the International Energy Agency" to evaluate the hypothesis. "We are maintaining high-level contacts with the US administration. So there are a lot of meetings and contacts going on."
