Giancarlo Giorgetti. Photo by Alessia Pierdomenico /Photographer: Alessia Pierdomeni

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(Bloomberg) — Italian Prime Minister Giorgia Meloni’s government may propose a pricey energy security and defense spending plan ahead of 2027 general elections, according to Corriere della Sera.

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The measures — which would need to be evaluated by European fiscal authorities — could include investments in energy infrastructure and measures to reduce carbon emissions, Corriere reported on Saturday. 

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Finance Minister Giancarlo Giorgetti may seek parliamentary approval in September for a budget deviation that would allow the government to widen deficit targets and create room for additional spending, the Milan-based daily newspaper said. 

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Giorgetti is expected to brief lawmakers on Aug. 5 on the national escape clause, an European Union rule allowing temporary budget flexibility in exceptional circumstances.

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The proposal could come with a price-tag of about €14 billion ($15.9 billion), according to Corriere, which didn’t say where it got the information. 

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No decisions have been finalized, the plans could still change, and the scope of any potential deviation remains under discussion, according to the report. 

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The development comes as Italy faces renewed pressure from high energy costs. In parallel to the package, Meloni’s government is working on a cut to fuel excise duties paid by Italy’s motorway network. Fuel prices are increasing on the back of US-led war in Iran, with the average self-service price standing at €2.069 per liter (about $8.90 per gallon) for gasoline and €2.249 per liter for diesel, according to the latest government data. 

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Meloni’s government has used temporary fuel tax relief measures to buffer drivers during previous energy shocks and is considering further intervention.

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The European Commission has allowed Italy to use additional fiscal flexibility for certain energy security investments alongside defense spending under EU fiscal rules, rather than for broad fuel tax cuts. According to Corriere, the framework could give Italy room for as much as €14 billion in spending over two years, although any increase in deficit spending would require approval by Italy’s parliament. 

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