Meloni: Budget Deficit Deviation Not Ruled Out, But Italy's Finances Are in Order

Prime Minister Giorgia Meloni, speaking from Cyprus during a European Council meeting, addressed the possibility of Italy deviating from its budget deficit targets. She indicated that any decision would be made after careful consideration of new European fiscal rules, leaving all options open. Meloni, known for her direct communication style, did not shy away from the topic, suggesting that Italy might need to pursue an "extra deficit" to manage current economic pressures.

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Let's see, first we will see what rules we will have at the European level, then we will decide how to move at the national level, we are not ruling anything out.

Her administration's stance appears to be bolstered by favorable polling data, with her party, Fratelli d'Italia, showing a significant lead. Meloni's team draws parallels between the current energy crisis and past emergencies, suggesting that Italians tend to rally behind their government during such times, perceiving external factors as the cause of their troubles rather than domestic policy.

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Nobody can say that Italy does not have its accounts in order. The disorder of the past weighs, someone left debts that the government had to pay for 5 years, I will finish paying them when the political elections arrive.

Meloni also took a swipe at previous administrations, particularly that of Giuseppe Conte, implying that her government is still dealing with the financial repercussions of past mismanagement. She asserted that Italy's public finances are fundamentally sound, despite the challenges, and pointed to the reduction in the deficit from 8.1% to 3.1% as evidence of her government's fiscal responsibility.

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I don't think the perceived solidity of the Italian economy will change. Clearly, what the context can produce I cannot say. But I don't think it will change because of this. Then clearly you are at 3.1 and you are sorry because you are very close to the goal, but we started from 8.1. Everyone sees the efforts made.

The Prime Minister also highlighted the need to exempt energy-related expenditures from deficit calculations, drawing a parallel with military spending which can already benefit from a similar safeguard under the Stability Pact. This push underscores Italy's focus on addressing the immediate needs of its citizens amidst the ongoing energy crisis.

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We today have the priority of energy expenses, giving answers to the needs of citizens.