If far right nationalists gain power in four big countries simultaneously, we are in for a dramatic Trumpian tilt

When it comes to Europe’s economy or its peace and security, it is obvious that decision-making has to be done largely at the European level to be meaningful. Yet electoral politics is still conducted mostly at the national level. The silver lining of this mismatch is that from country to country in Europe we have governments with different political priorities and leanings. Unlike in the US, where one presidential election can radically change the entire country’s course, as we have seen so vividly under Donald Trump’s leadership, the same drama has not so far unfolded in Europe. This may be about to change.

Pedro Sánchez rolled the dice in Spain last week, calling a snap election for next month after an unholy alliance of the conservative People’s party (PP), the far-right Vox and Catalan pro-independence party Junts blocked his big housing reform package in parliament. If the socialist prime minister, hailed by progressives globally but demonised by Europe’s right and Trump’s US, loses his election gamble, Spain could fall into the hands of a conservative/far-right coalition, which is currently ahead in the polls.

Nathalie Tocci is a Guardian Europe columnist

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© Photograph: Benoît Tessier/Reuters

© Photograph: Benoît Tessier/Reuters

© Photograph: Benoît Tessier/Reuters

The European Commission has rejected demands from Italy and Greece for additional exemptions from EU spending rules as the Middle East energy crisis drives inflation higher, exposing renewed divisions over how much financial assistance European governments can provide.

The European Commission has rejected requests from Italy and Greece for greater freedom to increase public spending in response to the energy crisis, resisting pressure from two member states that argue existing budget restrictions are limiting their ability to protect households and businesses.

The decision, confirmed on 8 October, follows renewed appeals from Italian Prime Minister Giorgia Meloni and Greek Prime Minister Kyriakos Mitsotakis for measures recognising the exceptional financial burden imposed by higher energy prices.

Meloni wants Brussels to take greater account of unexpected inflation when assessing national budgets and to permit additional tax revenue generated by rising prices to be used for energy relief. Mitsotakis has sought the exclusion of temporary support measures for consumers and businesses from the expenditure limits agreed under the EU’s fiscal framework.

Economic Commissioner Valdis Dombrovskis rejected the argument for further concessions, maintaining that the existing arrangements already take inflation into account and provide mechanisms for responding to exceptional circumstances.

The disagreement comes as Europe’s governments confront the economic consequences of the Middle East conflict, including higher fuel costs, inflationary pressures and increased demands for state intervention.

Italy’s increasingly difficult budget choices

For Italy, the dispute adds to a fiscal problem that has been developing throughout the year.

The government expects its budget deficit to rise to 3.4 per cent of GDP in 2027, reversing an earlier objective of reducing borrowing below the EU’s three per cent reference value.

As EU Today reported earlier this month, Rome plans to use additional fiscal room for defence and energy-related expenditure, while public debt is projected to remain close to 138 per cent of GDP.

The new request concerns the treatment of inflation and the financial support required to offset its effects.

Energy inflation creates an unusual budgetary problem. Governments can receive additional nominal tax revenue as prices rise, particularly through consumption taxes, while simultaneously facing public pressure to compensate consumers for higher living costs.

Meloni argues that such unexpected revenue should be available for targeted assistance without forcing equivalent reductions elsewhere in national expenditure.

Brussels is reluctant to accept arrangements that could turn temporary increases in tax receipts into an opportunity for permanent spending expansion.

Italy’s position also reflects the political competition between defence spending and domestic economic support. Rome has accepted the need for higher military expenditure but faces immediate pressure from households and energy-intensive industries.

That competition was already apparent when the government chose to prioritise energy relief over the full use of defence-spending flexibility.

Greece seeks different treatment for emergency support

Greece’s request is more narrowly focused on the treatment of temporary assistance under the EU’s expenditure rules.

Athens argues that measures intended to help businesses and households manage exceptional energy costs should not be counted against the normal spending limits.

The Greek government faces an economic environment in which higher imported energy prices threaten household purchasing power and business profitability, particularly in sectors dependent on transport and fuel.

Excluding temporary relief from expenditure calculations would give Athens additional room to intervene without breaching its agreed fiscal trajectory.

The Commission, however, has resisted establishing further exemptions beyond those already provided in the fiscal framework.

Its objection is institutional as well as financial. If additional categories of emergency expenditure are repeatedly excluded from fiscal calculations, the system becomes increasingly difficult to enforce consistently across the Union.

The limits of Europe’s reformed fiscal rules

The EU revised its fiscal governance framework in 2024, introducing nationally agreed expenditure paths intended to provide greater flexibility while maintaining sustainable public finances.

The Commission’s rules on exceptional circumstances permit member states to depart temporarily from normal requirements under specified conditions.

Those provisions have already been used to accommodate higher defence expenditure, while the Commission has also issued guidance on their application to energy-security investments.

Temporary financial assistance intended to reduce household energy bills, however, is not necessarily treated in the same way as investment in infrastructure that reduces Europe’s long-term dependence on imported fuel.

That distinction has become a source of friction between Brussels and national capitals.

Governments argue that the immediate economic effects of an international crisis require exceptional measures. The Commission is concerned that repeated concessions could weaken the credibility of the spending framework.

A wider dispute over Europe’s economic response

The Commission’s decision also comes as France faces increasing pressure over its debt and budget deficit.

The deterioration in French borrowing conditions has reinforced concerns about the risks associated with heavily indebted governments continuing to expand expenditure.

France, Italy and Greece have different fiscal positions, but the problems confronting them originate partly in the same combination of expensive energy, weak economic growth and competing spending commitments.

The dispute will now feed into preparations for the European Council meeting on 15–16 October, where energy prices and economic competitiveness are prominent agenda items.

EU leaders are expected to consider targeted and temporary measures to reduce the burden on businesses and consumers, alongside longer-term initiatives intended to reduce dependence on fossil fuels.

The Commission’s refusal to provide Italy and Greece with further fiscal exemptions establishes the limits within which those discussions will take place.

National governments remain free to introduce assistance, but Brussels is insisting that they account for its cost within the fiscal rules already agreed.

For Rome and Athens, the question is whether those rules provide sufficient room to respond to an energy crisis whose duration remains uncertain.

Italian Prime Minister Giorgia Meloni has applied to register her voice as an EU trademark, seeking an additional legal tool against artificial-intelligence systems capable of cloning politicians’ voices and producing convincing fake recordings.

Giorgia Meloni has applied to register her voice with the European Union Intellectual Property Office as governments and public figures look for new ways to counter increasingly convincing AI-generated deepfakes.

The Italian prime minister submitted a short audio recording in which she says “Io sono Giorgia Meloni” — “I am Giorgia Meloni” — to the EUIPO on Monday.

The four-second recording forms part of an application for a sound trademark intended to strengthen legal protection against unauthorised use of her voice.

The application filed with the EU intellectual-property system is currently listed as under examination. It is linked to categories including downloadable multimedia material, cultural activities and the organisation of political events.

Registration would not give Meloni ownership over every recording or imitation of her voice, nor would it automatically prevent AI systems from reproducing it.

It could, however, provide another legal basis for challenging certain commercial or misleading uses where the protected sound mark is employed without authorisation.

The distinction between a trademark and copyright is important in this case. Meloni has applied to protect a sound identifier through EU trademark law rather than to establish general copyright ownership over the natural characteristics of her voice.

Her application comes as voice-cloning technology becomes increasingly accessible.

Modern generative-AI systems can create convincing synthetic speech from relatively small samples of recorded audio. The technology is used legitimately for dubbing, accessibility and media production, but it can also be used for fraud, impersonation and political disinformation.

Meloni herself has previously been targeted by manipulated images and other deepfake material. She has also taken legal action in Italy over sexually explicit deepfake images created using her likeness.

The problem has acquired additional importance for politicians because synthetic recordings can be produced and circulated rapidly during election campaigns.

A false recording no longer requires sophisticated audio-editing equipment or extensive access to the target. Public figures provide large quantities of clean audio through speeches, television appearances, podcasts and social-media video — precisely the material needed to train voice-cloning systems.

The EU has already begun imposing specific transparency requirements on synthetic content.

EU Today reported in August that new provisions under the EU AI Act require certain AI-generated or manipulated audio, images and video to be marked in machine-readable form and impose disclosure obligations for deepfake material.

Those rules address transparency rather than ownership.

Trademark law potentially offers a different route by allowing an individual or organisation to claim rights over a specific sound used as a commercial or identifying mark.

Sound trademarks are not new. Companies have long registered jingles, tones and other distinctive audio signatures. What is unusual in Meloni’s application is the attempt by a serving head of government to use the system partly as protection against AI impersonation.

The phrase chosen for the application is itself closely associated with Meloni’s political identity.

“Io sono Giorgia” became widely recognised following a 2019 speech in which she described herself as a woman, mother, Italian and Christian. The phrase subsequently became the basis of online remixes before being adopted as the title of her autobiography.

Other performers have also sought stronger protection for their voices as generative AI improves.

Italian singer Giusy Ferreri has filed a similar application, while actors and musicians internationally have pressed governments and technology companies to prevent unauthorised voice cloning.

Meloni’s filing is unlikely on its own to settle the broader legal question of whether an individual can effectively control AI reproductions of his or her voice.

It does, however, illustrate how existing intellectual-property law is being tested against technology that can reproduce personal characteristics that were previously difficult to copy convincingly.

The EUIPO must now determine whether Meloni’s application satisfies the requirements for registration. Until that process is completed, the filing remains an application rather than an approved EU trademark.

Italy expects its budget deficit to rise above the European Union’s three per cent reference level again next year as Giorgia Meloni’s government uses new EU fiscal flexibility to finance defence and measures responding to higher energy costs.

Rome’s latest multi-year fiscal projections put the 2027 deficit at 3.4 per cent of GDP, substantially above the previous target of 2.8 per cent.

The increase follows a planned fall to 2.9 per cent this year, which would bring Italy below the EU’s three per cent threshold for the first time since 2019. The deficit stood at 3.1 per cent in 2025.

The change reflects Italy’s decision to use the EU’s national escape clause, allowing member states under specified conditions to deviate temporarily from their agreed expenditure paths.

Under the latest projections, Rome intends to use fiscal flexibility worth 0.6 per cent of GDP in both 2027 and 2028 for defence and energy-related spending. The additional expenditure amounts to roughly €29 billion across the two years, while the deficit is projected at 3.2 per cent in 2028.

The decision turns a long-running dispute over fiscal flexibility into a test of the EU’s revised budget framework.

The national escape clause was introduced in the 2024 reform of the Stability and Growth Pact. It permits a member state to deviate temporarily from its fiscal path when exceptional circumstances outside its control have a major effect on public finances, provided medium-term fiscal sustainability is not endangered.

The mechanism was subsequently used to give governments greater room to increase defence spending. In 2026, the Commission also moved to broaden its application to energy-security expenditure.

Italy has been among the governments pressing hardest for such flexibility.

In August, EU Today reported that Rome intended to use the available fiscal room fully for energy measures but only partly for defence. The decision illustrated the competition between longer-term military investment and the immediate political pressure created by household and industrial energy bills.

The latest projections make that trade-off larger.

Italy’s annual inflation rate increased to 4.1 per cent in September, from 3.2 per cent a month earlier. Meloni has sought additional room from Brussels to cushion the economic effect of elevated energy costs.

At the same time, the government has improved its growth forecasts.

GDP is now expected to expand by one per cent in 2026, compared with an earlier projection of 0.6 per cent. Growth for 2027 has been revised from 0.6 to 0.8 per cent.

Those figures provide some additional room, but Italy’s debt remains the larger constraint.

Public debt is projected to rise from 138.1 per cent of GDP this year to 138.5 per cent in 2027 before edging down to 137.9 per cent in 2028. The government now expects the debt ratio to begin falling a year later than previously planned.

That leaves Rome in an unusual position. It expects formally to bring its underlying deficit below the EU threshold while headline borrowing rises above three per cent once exceptional spending is included.

Economy Minister Giancarlo Giorgetti has said Rome is discussing with the European Commission how the calculation will affect Italy’s attempt to leave the EU’s excessive deficit procedure.

The Commission will therefore have to judge not only Italy’s fiscal trajectory but how extensively exceptional expenditure can be accommodated under rules Brussels itself has made more flexible.

That question has already generated concern.

EU Today reported last month that the European Fiscal Board had warned that exceptions were beginning to weaken the clarity of the revised rules. The watchdog has been particularly critical of allowing room initially associated with higher defence spending to be extended to energy-resilience measures.

Italy provides one of the clearest examples of the problem.

Rome is trying simultaneously to increase military capacity, protect households and businesses from energy costs and demonstrate that its very high debt remains manageable.

It has also argued that European rearmament cannot proceed unless governments have sufficient room to finance it. The same tension emerged in Italy’s debate over participation in the EU’s SAFE defence loan programme.

The EU has given governments more flexibility to manage those competing demands. Italy’s 2027 budget will show how far that flexibility can stretch before the argument returns to the credibility of the fiscal rules themselves.