Italy to Use EU Budget Benefits to Reduce Energy Costs

Italy will use the EU budget rule exemption in 2027-2028 to mitigate the consequences of energy price increases. An agreement on the relevant plan has already been reached between Prime Minister Giorgia Meloni and representatives of the governing coalition.

The measures will aim to reduce energy costs for households and companies. The European Commission allows member states to allocate part of the additional budgetary resources allocated for defense to energy projects.

Italy can use 0.3% of total gross domestic product for this purpose. The funds will primarily be used to facilitate the transition from fossil fuels to renewable energy.

This decision may alter Italy's deficit reduction plan. The government had planned to reduce the deficit to 2.9% of GDP in the current year and to 2.8% in 2027.

Source: Investing.com