Budget clash between Rome and Brussels: Prime Minister Giorgia Meloni writes to Ursula von der Leyen asking for room for action against price increases and inflation, but an immediate slowdown comes from the EU Commission. In his letter, the Head of the Italian Government highlights how the current spending rules limit support for families and businesses in a fragile economic context. The response from the Community Executive was not long in coming: “We have already granted greater flexibility”underlining how Italy has already requested the activation of the safeguard clause.
Meloni’s letter to von der Leyen
The pressure of inflation and the impact of energy costs reopen the confrontation between Rome and Brussels on budget rules. The prime minister Giorgia Meloni sent an official letter to the president of the EU Commission, Ursula von der Leyento ask for greater margin of maneuver on public spending.
In the letter, the prime minister thus illustrates the difficulties of families and the productive fabric: “Although the majority of member states have intervened to mitigate the increase in fuel prices and energy bills, families’ real disposable income is taking a hitwith overall inflation reaching a new high in September. Furthermore, the competitiveness of European businesses has been severely affected by higher energy costs“.
According to Meloni, the current European constraints risk hampering the support measures necessary to combat the crisis: “In this context the agreed net spending paths within the European fiscal framework leave limited scope to alleviate the impact on families and businesses without resorting to containment measures at a time of significant downside risks to the economy. We believe that the budgetary framework leaves the European Commission the necessary margin to take into account the relevant factors that I have just highlighted when evaluating ex ante compliance with the spending rule when examining the next draft budget plans”.
However, the Prime Minister reiterates Italy’s commitment to public finance balances, while calling for pragmatism: “We are aware of the risk involved in modifying the recently introduced budget rules, aimed at achieving an objective that we all share: debt sustainability“.
The response of the EU Commission
The response from Brussels arrived promptly during the daily press briefing, where the spokesperson of the EU Commission, Paula Pinho, immediately clarified the position of the Community Executive:“We have already given more flexibility to member states”.
The EU budget spokesperson, Balazs Ujvari, then took stock of the margins already agreed and the specific situation in Italy: “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. We have extended the scope of application of the so-called national safeguard clause, initially envisaged for defence, also to energyprecisely to offer Member States the budgetary space necessary to adopt measures to respond to the energy crisis we are facing”.
Ujvari then confirmed that Italy has already made its request: “This initiative offers member states the possibility to deviate from the so-called net expenditure path for an amount equal to 0.6% of overall GDPin the period between February 2026 and the end of 2028. This is an additional fiscal space that can be used, provided that the relevant procedures are completed. So far we have received indications from two Member States intending to move in this direction. One of them is Italyfrom which we received an activation request. It arrived a couple of weeks ago and is being examined by the Commission.”