Italy clinches a deal with the EU to shield households from soaring gas-driven electricity costs

Italy has reached an agreement with the European Commission on steps to prevent gas prices from driving up electricity costs, making it the first tangible outcome of the Brussels energy summit. The deal came after EU leaders spent much of Thursday night in fractious dispute over energy prices and carbon market reform. Diesel benchmarks remain nearly double pre-crisis levels, the International Energy Agency warned this week, with tight markets expected to persist well into 2027.

The EU's Emissions Trading System divided the summit, with Hungary, Slovakia, Czech Republic and Poland lining up against Nordic members over carbon costs.

Czech Prime Minister Andrej Babis held carbon market speculators responsible for undermining European industry's competitiveness, while Italy and Greece added their voices to calls for a weakened ETS.

EU leaders also discussed voluntary joint energy purchasing and pressed the Commission to address European refinery capacity, which has been in decline since 2009.