The grip of inflation is also gripping the budget. The September surge, with the annual figure already projected above 3%, threatens to squeeze spending margins, and the government is alarmed. Prime Minister Giorgia Meloni is warning the EU: under these conditions, with the "limited room" allowed by spending rules, families and businesses cannot be helped without "restrictive measures."
Brussels, even before receiving the letter from Rome (which arrived in the evening), immediately puts its hands up: "We have already given more flexibility to the member states" .
The issue was the focus of a two-hour meeting at Palazzo Chigi, during which the next steps for the budget were also reviewed. The Ministry of Economy and Finance called for "seriousness," predicting a "difficult" implementation, especially given the performance of government bonds and the rise in yields. With the spread now at 118.5 points , concerns are high.
But inflation is now under special scrutiny. And the letter announced by the Prime Minister is on the Commission's table. Meloni, addressing Ursula von der Leyen, calls for greater flexibility in budget rules to pass a budget that will help families and businesses in this difficult environment. The letter also calls for using "at least a portion" of the extra revenue resulting from rising prices to "temporarily and specifically mitigate the increase in energy costs."
Giorgetti has already discussed Italy's position with his European colleagues, but there's currently great caution in Brussels.
(Unioneonline)
