The Italian government, led by Minister Adolfo Urso, has officially called on the European Commission to suspend the Emissions Trading System. Rome argues that the mechanism has transformed into a repressive fiscal levy that is stifling European industry in the face of global competition and rising US tariffs. This demand is gaining support from some member states, although Scandinavian countries warn against dismantling the foundations of the European Union's climate policy.

Demand to Suspend ETS

Italy and France are demanding a halt to the emissions trading system, recognizing it as a barrier to industrial competitiveness.

Eastinvest Fund

Ursula von der Leyen announced a plan to launch 20 billion euros to support the eastern regions of the European Union.

Rise in Gas Prices

Natural gas quotations rose by 3.7%, increasing cost pressure on European producers.

Tariff Dispute with the USA

Europe is analyzing negotiation possibilities with China in response to Donald Trump's protectionist policy.

Italy has intensified diplomatic efforts in Brussels, seeking a radical revision of the Community's climate policy. Minister of Enterprise Adolfo Urso formulated a proposal to freeze the ETS mechanism pending a full review. According to the Italian administration, the current functioning of the allowances market favors financial speculation instead of stimulating real technological transformation. Italy's position is supported by representatives from France, including Stéphane Séjourné, who admitted that the system is now perceived by business as a burdensome tax, not an incentive for innovation. Meanwhile, Sweden, represented by Minister Ebba Busch, remains skeptical of deep changes, suggesting only minor operational adjustments. Intra-EU tensions coincide with new challenges in trade relations with the USA. Donald Trump maintains tariff rhetoric, forcing Europe to seek new negotiation strategies, including a potential rapprochement with China in selected sectors. Ursula von der Leyen announced the creation of a 20-billion-euro Eastinvest fund to support the Union's eastern regions, which is interpreted as an attempt to strengthen the bloc's internal cohesion in the face of global shocks. Simultaneously, Italian exports, despite ranking fourth globally in 2025, face structural problems; nearly half of local firms base their sales on only one foreign market, making them extremely vulnerable to sudden changes in customs regulations. The European Green Deal, launched in 2019, set an ambitious goal of achieving EU climate neutrality by 2050, which forced a deep reform of economic instruments such as the ETS. Commodity markets saw a significant rebound in blue fuel prices. Natural gas on the Amsterdam exchange rose by 3.7%, reaching 32.2 euros per megawatt-hour. This increase in energy costs, combined with the restrictive regulations of the Green Deal, raises justified concerns about the profitability of energy-intensive sectors. Despite these difficulties, the Italian construction market shows signs of resilience, an effect of implementing railway projects financed by PNRR funds. The Milan stock exchange reacted to these reports with moderate optimism, where indices remained above the reference level, driven by gains in Nexi and Stellantis shares, alongside weakness in Telecom Italia securities.

Mentioned People

  • Adolfo Urso — Italian Minister of Enterprise and Made in Italy, main initiator of the ETS system revision.
  • Stéphane Séjourné — French politician advocating for renegotiation of emissions trading rules in the EU.