Italian PM Meloni says they see a deal with the EU being close on measures to cut the impact of gas costs on electricity prices

Italy has been among the most persistent advocates within the EU for weakening the link between gas and power prices, given its gas-heavy generation mix and the way marginal pricing transmits gas moves directly into Italian electricity costs and inflation. Episodes of this kind follow a familiar sequence: a member state signals progress bilaterally, the Commission frames any fix within existing market rules, and the eventual mechanism tends to be a subsidy, cap or CFD-style arrangement rather than a rewrite of marginal pricing, since several northern states have historically resisted structural changes. The read worth drawing is between national measures, which are fiscally contained and quick, and anything requiring EU-level agreement, which has in past episodes been slow and diluted. The transmission channel for markets runs through Italian power forwards and the gas-power correlation rather than through the gas price itself, with the knock-on into Italian inflation and the BTP complex if sustained. Watch for whether Brussels confirms a shared framework or whether this resolves into a Rome-only measure, and for any reaction from member states that have previously blocked intervention in the power market. As a political signal rather than a policy text, the substance sits in the follow-through.