Meloni urges EU budget flexibility amid Iran war shock

Italian Prime Minister Giorgia Meloni on Thursday renewed calls for the EU to allow greater budget flexibility for measures aimed at easing the energy-price shock caused by the Iran war.

Speaking to Mediaset television, Meloni said the same flexibility currently applied to defense spending under EU fiscal rules should also be extended to support households and businesses struggling with rising energy costs, according to Italian news agency ANSA.

"We cannot tell citizens that there is only money for defence," Meloni said.

She added that while she strongly supports increased defense spending by both Italy and Europe, governments must also respond to the economic pressures facing ordinary people and companies.

"If, in the face of crises, we are unable to provide answers to citizens and businesses, we risk there being nothing left to defend in this country," she said.

Meloni said Europe must "seek a balance" between defense priorities and economic support measures.

European governments have faced renewed concerns over energy prices following tensions linked to Iran and disruptions affecting key regional shipping routes, including through the Strait of Hormuz, a critical corridor for global oil and gas supplies.