Stability Pact, Italy awaits the EU response on energy flexibility

The government awaits a response or counter-proposal from the EU to the request made by Italy to introduce greater flexibility in the stability pact also on energy matters, as it is already possible to do on security. A request made following the surge in prices of energy goods resulting from the war in Iran. Yesterday sources from Brussels made it known that the Commission’s response should arrive on next June 3rd in conjunction with the presentation of the “European Semester Spring Package“.

Meanwhile the International Monetary Fund estimates that Italy “will continue to grow at a modest pace, held back by unfavorable external factors and structural challenges” such as “too high” public debt, which exceeds 3 trillion.

“Italy’s position is very simple: we believe that we live in an exceptional situation. Of course, there are countries that no longer have manufacturing so they are less interested in energy. But if the answer is that ‘it is not possible to do this because we are not in a serious recession’ the reply is because then it can be done for defense spending”, notes the Minister of Economy Giancarlo Giorgetti during the League’s annual economic seminar in the Chamber. Then he adds: “The discussion” with the EU “is ongoing, it is not easy. I hope that a counter-proposal or a response from the EU on this aspect will arrive shortly, there are all the elements to have one. We are moving forward because we are convinced that we are in the right”.

The criticism of Europe’s geopolitical approach

Another assessment concerns the EU approach to the current global crisis. “In China and the USA the issue is addressed with a political vision. Essentially – the minister assesses – Europe is a passive subject that suffers the decisions of others. We continue with an approach from 10 or 20 years ago, in a world which has however become totally different. You cannot continue to use tools, rules and methods from an era that is outdated”.

The deputy prime minister and leader of the League’s assessment of the EU is harsher Matteo Salvini: “When they ask us if Brussels said no, what do you do? If Brussels says: ‘you’re dying and I’ll let you die’, I don’t die. I don’t stop the Italian industrial system out of whims, complicity, slowness or obtuseness.”

The International Monetary Fund estimates on GDP and debt

Meanwhile, today the IMF notes that in 2025 the Italy’s real GDP grew by 0.5%supported by private consumption and continued investments under the Pnrr and with the war in the Middle East, growth of 0.5% is expected both this year and in 2027. But the Fund warns that public debt “remains too high”. The overall deficit, he underlines, was reduced to 3.1% of GDP in 2025, reflecting a better result than the initial target for the second consecutive year. Despite this progress, public debt has increased to around 137% of GDP at the end of 2025 and debt dynamics remain “vulnerable to shocks related to growth, interest rates and confidence”.

The Fund also invites us to evaluate the effectiveness of the measures adopted by the government to mitigate high energy costs. The measures “should be neutral from a budgetary point of view, temporary, well targeted and not undermine the incentives to reduce energy consumption” and therefore “the recent generalized reduction in excise duties on diesel and petrol, aimed at mitigating the impact of the shock, should be replaced by cash transfers targeted to the most vulnerable families”. At the same time, the Fund notes, “any new spending, including defense spending, should be fully offset to safeguard fiscal sustainability.”

Giorgetti’s reply on debt and excise duties

Giorgetti, when asked about these notes, replies: “We know that the debt is highit doesn’t seem like anything new to me, when we finish paying the installments of the past” of the Superbonus “as you know it will naturally decrease. This is why we are so careful in managing public finances.”

As for the Fund’s invitation to replace the cut in excise duties on fuel with measures for families, the head of the MEF replies: “Read the whole report” “yesterday we had the meeting, everything went well”.