Italy seeks €14bn flexibility from EU as energy prices surge
Italy has formally asked Brussels to activate a national flexibility clause that would free up to 14 billion euros over three years for energy investments, as fuel prices climb past €2.10 per litre for petrol and €2.20 for diesel. Economy Minister Giancarlo Giorgetti, speaking from Dublin where he attended an informal Eurogroup meeting, said he believes the European Commission will grant the additional spending room, which amounts to 0.6% of GDP.
The request came via letter to Brussels and requires Italy to define a list of eligible energy measures. The government also intends to request flexibility for defence spending of roughly €22 billion. Giorgetti framed the move as an opening in European economic governance that Italy secured by spending its credibility.
What energy aid Italians will see
The measures under discussion span households, businesses, public bodies and mobility, according to Giorgetti. The aim is to guarantee Italy's energy and technological sovereignty while reducing foreign dependence.
For households, the government is considering a one-off €115 contribution for vulnerable families, which would supplement existing social bonuses. Expanded bill discounts are also being weighed for families with an ISEE under €25,000. An Ecobonus for energy retrofitting remains active through the end of 2026, and officials are studying whether to raise the deduction rate to 65% for primary residence upgrades.
For businesses, particularly energy-intensive firms, the package includes reducing system charges and strengthening long-term Power Purchase Agreements to stabilise prices. A three-year "hyper-depreciation" measure supports investment in 4.0 capital goods and technologies for self-producing renewable energy.
On mobility, the government intends to make the abolition of the annual car tax permanent and align fuel duties between petrol and diesel. The Environment Ministry has allocated €594 million to urban mobility projects, including public transport fleet renewal.
Windfall profits tax gains traction at EU level
Italy jointly signed a letter with Germany, Austria, Poland, Portugal and Spain on August 22 urging a common EU approach to energy price spikes triggered by the Middle East conflict and the closure of the Strait of Hormuz. The signatories want the Irish presidency of the Council to put a tax on energy windfall profits on the agenda.
Irish Finance Minister Simon Harris, holder of the rotating presidency, said he will ask the Commission to present "further reflections" at the formal Ecofin meeting in Luxembourg in October. Harris noted that some companies are achieving extraordinarily high profits not through entrepreneurship but simply from supply disruptions.
Giorgetti told reporters in Dublin that the situation is worsening and he expects more countries to join the initial group of six. European Commissioner Valdis Dombrovskis has said the Commission does not intend to propose an EU-wide mechanism, noting tax policy remains a national competence.
Nuclear bill postponed, aiming to restore decades-old regulations
The Senate vote on the nuclear enabling law, following general discussion on September 16, 2026, has been postponed to the following week. The bill, already approved by the Chamber of Deputies on June 4, would give the government 12 months to restore nuclear regulations that were abandoned after the 1987 referendum—covering site selection, plant construction, operation, decommissioning, and radioactive waste management. Technologies in focus include advanced nuclear and fusion.
Tax relief for young workers and middle income earners
Beyond energy, the budget package may revise the ISEE-based bonus system and raise the flat tax ceiling to €100,000. Undersecretary for Labour Claudio Durigon said the main problem is youth salaries and reiterated a proposal for a 5% IRPEF rate on new permanent contracts for workers under 30, lasting five years.
Confindustria President Emanuele Orsini said the business association will present "10 economic points" in October, focusing on investments and long-term planning.
