Overview
- Rome formally sent the letter to Commission president Ursula von der Leyen on Oct. 1 asking Brussels to count unexpected inflation as a ‘relevant factor’ when judging compliance with EU spending rules.
- The Council of Ministers approved the Documento programmatico di finanza pubblica and activated a partial national safeguard, authorising a 28-billion-euro extradeficit over two years split evenly for energy and defence.
- Brussels has replied that it has already granted extra flexibility to member states, including the 0.6 percent-of‑GDP margin for energy and defence, and has signalled caution about widening those concessions.
- Inside the Italian government there is a split between ministers urging fiscal prudence to protect debt and market confidence and coalition figures calling for a bolder, larger manoeuvre to shield households and firms.
- Italy is pressing for EU-level fixes — such as temporary adjustments to the ETS rules and permission to use part of inflation-driven extra revenues for targeted relief — and negotiations will continue at Ecofin and the October EU Council.