Italian premier warns EU fiscal rules could jeopardize SAFE program amid energy crisis

Italian Prime Minister Giorgia Meloni has urged the EU to extend fiscal flexibility rules linked to the energy crisis, warning that Italy's participation in the SAFE program could otherwise be at risk, according to ANSA News Agency.

"The Stability Pact exemption for defense must be extended to energy crisis spending, or Italy's activation of the SAFE program is at risk," Meloni wrote in a letter to European Commission President Ursula von der Leyen.

She argued that rising energy costs and geopolitical tensions were making it increasingly difficult to justify use of the SAFE mechanism without broader exemptions.

Meloni added that she was "certain that the Commission will understand the scope and urgency of this request."

The European Commission responded that its position remained unchanged.

"Our position has not changed," a Commission spokesperson said, adding that the EU had presented member states with "a range of options available to them to address the current energy crisis."

The spokesperson said the Commission was not considering use of the National Escape Clause at this stage.

The Commission also confirmed receipt of Meloni's letter but declined further comment on its content.

"Regarding fiscal flexibility in the energy sector, the focus right now is on fully exploiting the EU funding already available, which is truly substantial," the spokesperson said.

The EU executive added that it "continues to closely monitor developments and stands ready to act accordingly, including by making use of existing flexibilities."