We’re examining Italy’s request for energy shock waiver’ – Dombrovkis
‘We are closely monitoring the situation to assess what type of response it requires’
European Commission is examining Italy’s request for the Stability and Growth Pact’s fiscal rules to be waived not just for defence but also for the energy shock stemming from the Iran war, Economy Commissioner Valdis Dombrovskis said Tuesday.
“In the EU Commission, we continue to closely monitor the situation and assess what type of response it requires and will require,” said Commission Vice President Dombrovkis at the end of the G7 Finance Ministers’ meeting in Paris, answering journalists’ questions about Italy’s request to extend the safeguard clause already in place for defence to energy.
“And it is in this spirit that we are also examining Italy’s request,” he said.
“In general,” Dombrovkis continued, “our policy orientation is to adopt temporary and targeted measures to support the economy, which do not increase demand for fossil fuels. “The problem we are facing is a supply-side shock. If many countries support the demand side, we end up keeping energy prices high and spending a lot of money with limited results.
“For this reason,” the Commission Vice President continued, “we need to think carefully about how the policy response should be organized.
“Our advice regarding temporary and targeted measures is also fully in line with that of the IMF.”
