Italy seeks EU inflation adjustment in budget rules

Italy is asking the EU for extra room in its budget rules as energy costs push up inflation. The government says it will ask the European Commission to account for higher inflation when judging Italy’s permitted deficit—the gap between what the state spends and collects—rather than treat that pressure like ordinary overspending. Rome has already said it will use an existing national escape clause to spend 14 billion euros over two years reducing energy costs for companies; the new request seeks additional, still unspecified flexibility. The aim is to cushion businesses from high energy prices while preserving Italy’s effort to bring its deficit below EU limits.