European Commission Rejects Italy's Budget Rule Request

An European Commission spokesperson told ANSA that member states cannot unilaterally leave the Stability and Growth Pact. The spokesperson explained that the fiscal rules are part of Union law and are binding for all member states. This follows discussions regarding Italy potentially abandoning the pact. These requests were intended to address rising energy costs. The decision follows discussions on using existing flexibility within the pact. European Commission Commissioner Paolo Dombrovskis rejected a request from Italy to relax European budgetary rules. Italy proposed that additional costs incurred from energy measures should be excluded when calculating government debt and budget deficits. The IMF noted that excise tax reductions primarily benefit wealthy Europeans rather than vulnerable households. Dombrovskis maintained the Commission's stance against the requested easing of fiscal constraints.