Italy’s economy minister warned Wednesday that energy costs are climbing across Europe because of the war against Iran, and said he expects more EU countries to back a joint push for a coordinated response.
Giancarlo Giorgetti told reporters after a cabinet meeting that extended Italy’s diesel duty cut that he had spoken with European counterparts that morning. “The situation is worsening,” he said, referring to energy prices driven by the conflict.
The remarks come as Italy and five other EU member states—Germany, Austria, Poland, Portugal and Spain—have sent a letter to Brussels urging the Irish presidency of the EU Council to adopt a common approach to the West Asian conflict and related supply-chain disruptions. The letter, dated August 22, also raises the possibility of taxing excessive energy windfall profits.
Giorgetti said support for the initiative is likely to grow before the next Ecofin meeting. “We started as a group of five, but others will quickly join,” he said. He added that while there is room for optimism about the EU’s response, it should be “very cautious.”
The minister’s comments underscore growing concern in Europe that the Iran conflict could further destabilize energy markets, push up fuel costs and complicate supply chains. Italy’s decision to extend the diesel duty cut reflects the pressure governments face to shield consumers and businesses from rising prices.
The letter to Brussels signals a push for a more unified EU stance, both on the conflict and on measures to ease the economic strain. A windfall profits tax on energy companies is among the options under discussion, though no decision has been made. EU finance ministers are expected to take up the issue at the upcoming Ecofin meeting, where Giorgetti’s call for broader support may set the tone for the debate.
