She advocated for more flexible EU fiscal rules to enable increased defense investment, underscoring the importance of finding new resources for strategic choices.

The upcoming EU summit in Budapest will focus on competitiveness, with Italian Prime Minister Giorgia Meloni emphasizing its critical importance and featuring insights from former European Central Bank chief Mario Draghi.

Meloni has identified competitiveness and tariffs as key issues that Europe must tackle during the summit discussions.

Meloni stressed the necessity for Europe to establish a balanced economic approach, indicating that decisive action is required to address these challenges.

European leaders are expressing significant concern over Donald Trump's recent election victory, fearing implications for NATO, the Ukraine war, and trade policies.

Draghi's report for the summit calls for an additional €800 billion in annual investment to boost the EU economy, which equates to about 5% of the bloc's yearly output, highlighting the need for urgent reforms.

Despite some optimism regarding potential changes in German leadership, the current political limbo is likely to hinder immediate economic stimulus measures within the EU.

Meloni noted that the political instability in Germany and France, particularly following the collapse of Germany's coalition government, poses additional challenges for EU unity.

In light of Trump's election, Meloni emphasized the need for the EU to prioritize internal issues such as tariffs, competitiveness, and defense.

Draghi has warned that without prompt action, the EU could face a 'slow and agonizing decline,' stressing the urgency to address postponed decisions affecting economic growth.

The summit is expected to endorse a 'new European competitiveness deal' that aligns with Draghi's recommendations, aiming to cut bureaucratic hurdles and bolster key sectors.

Following Trump's victory, Meloni expressed her positive view of Tesla CEO Elon Musk, whom she considers a valuable ally, highlighting a recent conversation with him.