The European cap on gas prices is essential, otherwise, the funds invested will only feed speculation, said Italian Prime Minister Giorgia Meloni, who hopes common solutions will soon arrive from the EU.
The Italian government approved a €35 billion economic manoeuvre on Tuesday, €21 billion of which will be earmarked for energy measures.
“I see it as a courageous manoeuvre, consistent with the commitments made to the Italian people and courageous because it bets on the future,” said Meloni, who cited growth and social justice as two priorities.
A national response to a European problem, the energy crisis, which needs an EU response to tackle the price increases that are putting families and businesses at stake.
Meloni hopes to “find solutions in the EU” and explains that she has initiated talks with the EU institutions with which to reason about “an instrument like ‘Sure’, used for the pandemic, and about possible flexibility in the use of existing structural funds.”
“There is no perception of Italy being watched”, clarifies Meloni with the intention of dispelling doubts about her government’s authority in Europe.
On the same day, the Commission proposed a price cap of €275 per megawatt-hour on gas to come into force on 1 January 2023, which will be valid for one year.
EU Energy Commissioner Kadri Simson explained that this is not a “regulatory intervention” but rather a “last resort mechanism” that will act as a corrective if prices exceed the cap for a fortnight.
“These are resources I would like to spend otherwise. It is a bottomless pit if there is no European solution,” Meloni added.
Commission assessment pending for Italy
The Commission has presented its package of assessments of budget laws and the management of national public accounts, and Italy was found to be poised due to its high deficit-to-GDP ratio.
In the Alert Mechanism Report, the Commission puts Italy and 17 other countries under surveillance for excessive macroeconomic imbalances, which will be subject to an in-depth review to assess the evolution of the situation.
The Commission points out that “countries with higher debt ratios” could face “high risks to fiscal sustainability” and are “particularly vulnerable to changes in financing conditions.”
“Member states should make full use of National Recovery Funds and RePowerEu funding to make important investments while pursuing structural reforms,” said Commission Vice-President Valdis Dombrovskis, suggesting to “avoid large-scale fiscal stimuli.”
The Italian budget was approved sometime between Monday night and Tuesday, and EU Economy Commissioner Paolo Gentiloni said it would be examined once it arrived in Brussels, which would be between Wednesday and Thursday.
“It is very difficult for us to follow a first impression, we have to see the budget, the texts and evaluate them. I think it is also a duty to treat all countries equally,” said Gentiloni.
(Federica Pascale | EURACTIV.it)
Source: euractiv.com
