Italy to seek more leeway on EU budget rules to factor in inflation impact

Italy ​wants European ​Union authorities to grant "additional ‌flexibility" on ​the bloc's budget rules to factor in ‌the impact of spiking inflation fueled by energy costs, Prime Minister Giorgia Meloni said ‌on Wednesday. "I will send a letter to [European ‌Commission President Ursula] von der Leyen ," Meloni said at an event organised by newspaper Il Gazzettino.

Meloni ⁠added ​she ⁠would spend €14 billion ($16 billion) over two years to ⁠lower energy costs for firms by tapping ​into a so-called "national escape clause" from EU ⁠budget rules. But she said Rome would put ⁠pressure ​on the EU to secure further budget leeway, without giving details.

"Higher ⁠inflation must be taken into account when calculating ⁠the ⁠EU parameters for the permitted deficit," Meloni said. ($1 = 0.8823 euros)