EU could freeze deficit rules if Iran war persists, Italian minister says
By Giuseppe Fonte
Published on April 1, 2026.
The European Union could freeze rules forcing member states to reduce their budget deficits to below 3% of output if the conflict in the Middle East continues, according to Italy's EU Affairs Minister Tommaso Foti. This comes as European governments face increasing pressure to adopt costly aid measures to help combat higher energy costs. Foti suggested that the European Council might make such a decision if the situation continues to worsen. The Italian government pledged to bring Italy's fiscal gap below 3%, paving the way for the country's exit from the EU's infringement procedure for excessive deficit.
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