Italian Prime Minister Giorgia Meloni has called for the creation of a free trade zone between the European Union and the United States, as a response to the announced tariffs by the Donald Trump administration. Simultaneously, the government in Rome is exerting unprecedented pressure on Brussels, demanding the immediate suspension of the Emissions Trading System (ETS), which, according to Italian ministers, is paralyzing the competitiveness of European industry and burdening household budgets.

Free Trade Zone Initiative

Giorgia Meloni proposes close economic cooperation with the US as a countermeasure against Donald Trump's tariff policy.

Rebellion Against the ETS System

Italy is pushing in Brussels for the suspension of CO2 emission fees, deeming them destructive to industrial competitiveness.

Privatization of MPS Bank

The Prime Minister announced the state's withdrawal from the capital of Monte dei Paschi di Siena, concluding a multi-year public restructuring process.

Resistance from the Scientific Community

A group of 150 scientists, led by a Nobel laureate, signed a letter in defense of the ETS, warning of the consequences of halting the transition.

Italian Prime Minister Giorgia Meloni, in an interview with Bloomberg, described the tariffs announced by Donald Trump as a mistake and offered an ambitious way out of the impasse in transatlantic relations. The proposal to create a joint free trade zone aims not only to ease tariff tensions but also to strengthen the economic alliance in the face of growing competition from China. Meloni emphasized that Europe cannot afford prolonged divisions in the current geopolitical situation. This statement coincided with a declaration to end the state's public stake in Monte dei Paschi di Siena bank, which triggered immediate reactions on the stock market. Concurrently, the Meloni government has initiated a broad front within the European Union, seeking a radical change in climate policy. Economy Minister Adolfo Urso officially called for the suspension of the ETS, labeling it a "tragic mistake" and a "tax imposed on businesses." Italy argues that current energy costs are the main factor hindering development, and the emissions trading system requires a thorough revision before it leads to irreversible deindustrialization of the continent. However, this demand has met resistance, including from Sweden, which warns against undermining the foundations of the EU's green transition strategy. The origins of the EU's emissions trading system date back to 2005, when the community decided on a pioneering market-based solution on a global scale to limit atmospheric pollution. Since then, the system has undergone four phases of reform, becoming a central instrument of the European Green Deal. The dispute over the ETS is exacerbated by a letter from 150 scientists, including Nobel laureate Giorgio Parisi, who oppose halting climate fees, pointing to the necessity of fighting global warming. Meloni thus faces the difficult task of balancing between trade liberalization with the US and protecting domestic industry from Brussels' stringent environmental requirements. Experts emphasize that, besides tariffs, an unfavorable euro-to-dollar exchange rate remains a significant problem for Italian exporters, further complicating Italy's economic situation on the international stage. „I dazi sono un errore, tra Usa e Ue serve un'area di libero scambio” (Tariffs are a mistake; what's needed between the US and the EU is a free trade area.) — Giorgia Meloni

Mentioned People

  • Giorgia Meloni — Prime Minister of Italy, leader of the Brothers of Italy party, initiator of a new trade strategy with the US.
  • Adolfo Urso — Italian Minister of Enterprises and Made in Italy, a leading critic of the EU's ETS system.
  • Giorgio Parisi — Italian physicist, Nobel Prize laureate, signatory of a letter defending the EU's climate policy.