Italian Prime Minister Giorgia Meloni has called on the European Union to consider a temporary suspension of budget deficit rules if the conflict involving the United States, Israel, and Iran escalates further.
Speaking before the Italian parliament, Meloni said the EU should be ready to adopt a response similar to the one used during the COVID-19 crisis.
“In the event of further escalation in the Middle East, we must seriously consider a European response similar in approach and tools to that adopted during the COVID-19 pandemic. It should not be taboo to discuss a possible temporary suspension of the Stability and Growth Pact—not as an exception for individual states, but as a general measure,” she stated.
Meloni also said her government is prepared to take all necessary steps to prevent speculation in energy prices, including imposing windfall taxes on energy companies.
Under EU rules, member states must keep public deficits below 3% of GDP and public debt below 60%, but these rules can be suspended in exceptional circumstances. The EU previously activated a “general escape clause” between 2020 and 2023 to respond to the pandemic’s economic impact.
