Italian Prime Minister Giorgia Meloni has emphasized the need for long-term strategies to tackle surging energy costs, cautioning that short-term emergency measures are insufficient for sustainable resolution. Addressing the Assolombarda assembly in Milan, Meloni highlighted how geopolitical tensions, particularly in regions like the Strait of Hormuz and the Red Sea, have exacerbated the costs of energy, raw materials, and transportation. These factors have driven inflation, straining households, businesses, and public finances.
Meloni revealed that the Italian government has already allocated over €60 billion to mitigate the impact of high energy costs on consumers and businesses, implementing measures such as reducing energy bill surcharges and adjusting fuel excise duties. However, she stressed that these interventions alone cannot address the broader challenges at hand.
In response to inflation pressures, Meloni intends to advocate for greater budget flexibility within the European Union, allowing for adjustments in public spending to accommodate inflation-driven costs. She plans to bring this issue to the forefront at the upcoming European Council meeting, arguing that the current EU budget rules limit fiscal space necessary for investment and economic growth.
Furthermore, Meloni proposed modifications to the EU’s Emissions Trading System (ETS), suggesting that the costs associated with it could disadvantage European industries compared to global competitors. Protecting domestic manufacturing and supply chains while pursuing environmental goals remains a priority for Italy, according to Meloni.
As part of Italy’s strategy to enhance energy security, the prime minister noted efforts to expand renewable energy capacity and bolster domestic oil and gas production. These measures are integral to reducing reliance on external energy sources and stabilizing the national energy landscape in the long term.