Italy Pushes to Weaken EU Green Budget Rules

Italy is leading efforts to water down environmental rules in the European Union’s next multiannual budget, opening a new divide in already difficult negotiations over the bloc’s 2028–2034 spending plans, according to Politico.

The dispute centers on the European Commission’s “Do No Significant Harm” (DNSH) principle, which is intended to prevent EU funds from being spent on projects that damage the environment.

Prime Minister Giorgia Meloni’s government warns that overly strict conditions could deprive industry and major infrastructure projects of funding, weaken the EU’s competitiveness vis-à-vis the United States and China and hurt employment.

The Commission has already proposed exemptions for defense, security, crisis situations and projects deemed to be of overriding public interest. According to diplomatic sources, however, Rome does not consider these carve-outs sufficient.

Nordic countries and environmental organizations are taking the opposite position, warning that further weakening the rules could undermine the EU’s climate goals.

The proposal will be discussed further during negotiations among member states in the autumn.

(mja)