Italy's Economy Minister, Giancarlo Giorgetti, expects the European Union to consider easing its budget deficit rules if the U.S.-Israeli war with Iran continues. The cabinet has approved a decree setting aside €500 million ($577.20 million) to extend a cut in excise duties on fuels until May 1 from April 7. This move is part of a wider effort to stabilise prices. Giorgeti's comments suggest that Italy may fail to bring its deficit down to 2.8% of gross domestic product this year from 3.1% in 2025 due to lower-than-expected growth amid rising energy prices. The EU has a 'general escape clause' to suspend its budget rules and allow member states to respond to the COVID-19 pandemic, which triggered lockdowns and economic downturns in EU countries.