In a letter addressed to the President of the European Commission Ursula von der Leyen, the head of the Italian executive branch noted that as the year enters the fourth quarter, hopes for a quick resolution to the Middle East crisis have proven unfounded, and energy markets remain extremely tense.
She added that although most member states have taken steps to mitigate the rise in fuel and utility prices, real household disposable income has been seriously affected as global inflation reached a new peak in September.
In this context, Giorgia Meloni appealed to the European Union to allow the use of part of the additional revenues obtained from 'a short-term increase in indirect tax revenues due to higher inflation' to temporarily and specifically cushion the rise in energy costs.
The Italian Prime Minister acknowledged the risk associated with changing the recently introduced budgetary rules, which aim for the overall goal of debt sustainability. Nevertheless, Giorgia Meloni emphasized that the budgetary system allows room for the European Commission to take into account the important factors she mentioned.
As she considers this issue 'urgent,' the Prime Minister proposed that it be considered at the next meeting of the European Union's Economic and Financial Affairs Council (ECOFIN), scheduled for October 9, which will bring together finance and economy ministers of the member states.
According to a preliminary assessment by the National Institute of Statistics (Istat), inflation in Italy showed a clear acceleration in September, reaching 4.2% compared to the previous year, mainly due to rising fuel prices. Previously, the conflict in the Middle East had already led to an inflation increase of approximately 3% on the peninsula in recent months.