Italy's Ministry of Economy and Finance says talks continue on extending EU fiscal flexibility to energy spending after G7 meetings

Italy's Ministry of Economy and Finance said Finance Minister Giancarlo Giorgetti took part in the G7 meeting of finance ministers and central bank governors in Paris, where discussions focused on the global economic outlook and the economic effects of ongoing conflicts. Alongside those talks, negotiations continued on Italy's request to extend the National Escape Clause, already available for defence spending, to the energy sector under the European fiscal framework. The ministry said the wider G7 discussion covered the war in Ukraine, tensions in the Middle East, macroeconomic imbalances and the availability of critical raw materials, with India, Brazil, Kenya and South Korea also participating as guest countries. On the fiscal flexibility request, Giorgetti said several routes are being explored and that the issue is complex. The discussions involve several European countries and will continue through the review of the "relevant factors" provided for in European economic governance and updated public finance data. He also pointed to Italy's very high inherited debt, the risk of higher interest rates and the impact of two consecutive energy shocks linked to the conflicts in Ukraine and the Middle East. The ministry said the negotiations will continue in the coming weeks across institutional forums in Paris and Brussels. On the sidelines of the G7, Giorgetti also held bilateral meetings with European Commission Executive Vice-President Valdis Dombrovskis and counterparts from France, Germany and Japan, covering the European economic outlook, fiscal-rule flexibility and the economic and security implications of artificial intelligence.