Investing.com — Italy is considering extending its cut on fuel excise duties beyond May 1 as part of measures to help families and businesses cope with rising energy prices, Prime Minister Giorgia Meloni said on Tuesday.
“We are assessing a further extension, which might be shorter than the previous ones,” Meloni told reporters at a press conference following a cabinet meeting.
The government has spent around 700 million euros to reduce excise duties on petrol and diesel for just over 40 days until May 1. Meloni said the new cut under discussion could have a greater impact on diesel than on petrol.
The prime minister also said her government had set aside almost 1 billion euros ($1.17 billion) to extend and reinforce tax breaks designed to encourage employers to hire staff.
Italy, which is highly dependent on imported energy, faces particular vulnerability to supply disruptions caused by the U.S./Israeli conflict with Iran.
Meloni called for the European Commission to allow member states to soften energy costs by using budget flexibility that is explicitly designated for defence and security spending.
Under a National escape clause, the EU allows countries to exceed the bloc’s budget deficit limits in cases of exceptionally adverse economic circumstances or to increase defence spending. For defence spending, the budget flexibility is available for four years between 2025 and 2028, with a deficit increase that must not exceed 1.5% of national output per year.
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