
AI-generated summary
The Italian government is preparing the public finance planning document (DPFP), which must include the cornerstones of the budget law and could be accompanied by the report on the clause linked to energy and defense. In the context of high inflation and the energy crisis, Italy is asking for greater budgetary flexibility from the EU to address the impact on public finances.
Meeting 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.
Brussels' response to Rome on flexibility
"We have already given more flexibility to member states." This was stated by EU Commission spokeswoman Paula Pinho, when asked during the meeting with the press on Italy's request for greater flexibility in light of the high levels of inflation.
"We have not yet received the letter" sent by Prime Minister Giorgia Meloni, however, specified spokesperson Balazs Udjvari, then recalling the characteristics of the national safeguard clause also extended to energy as well as defense investments.
In the afternoon, Meloni, at a Cna event, announced that he 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."
AI outlook — possibilities, not facts
The European Commission will formally respond to Italy's request for budget flexibility within the next few weeks.
Likely · Within weeks
The public finance policy document (DPFP) will be launched in the coming weeks, including the cornerstones of the budget law.
Very likely · Within weeks

Prime Minister Giorgia Meloni has sent a letter to European Commission President Ursula von der Leyen asking for greater budget flexibility to deal with the impact of higher-than-forecast inflation. Economy Minister Giancarlo Giorgetti explained that the request is technical but substantial, since the nominal spending path must deal with a higher real inflation rate than that planned by the Commission. Brussels responded by stating that it had already granted space through the extension of the national safeguard clause to energy and defence, and that it was examining the Italian request together with that of the Czech Republic. Meanwhile, the meeting for the launch of the Public Finance Policy Document (DPFP) continues at Palazzo Chigi, in view of the 2027 Budget Law.

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