Meloni urges EU to ease fiscal rules over energy crisis

In a letter sent to European Commission President Ursula von der Leyen, Meloni said the EU must show the same “political courage” on energy as it has on defence spending, warning that soaring energy prices require urgent coordinated action, News.Az reports, citing Euro News.

Meloni said energy security should be recognised as a European strategic priority, alongside military defence, especially amid growing geopolitical tensions and risks to global energy supply routes such as the Strait of Hormuz.

She argued that financial flexibility should not apply only to defence-related spending but also to protecting households, businesses and industrial production from energy shocks that could damage Europe’s economy.

Meloni referred to the EU’s National Escape Clause, which allows temporary fiscal flexibility for defence spending, saying similar measures should be extended to energy emergency responses.

She also warned that without such flexibility, Italy could face difficulties in supporting the EU’s €150 billion Security Action for Europe (SAFE) defence programme, which aims to boost military investment across member states.

Italy, which has the second-highest debt-to-GDP ratio in the EU after Greece, has limited fiscal space for large subsidies under existing rules, increasing pressure on Rome’s budget decisions.

Italian Defence Minister Guido Crosetto has separately sought clarification over Italy’s participation in the EU defence procurement scheme, with a final decision expected later this month.