(Adnkronos) – The European Commission’s temporary easing of European Union fiscal rules to help countries cut their reliance on fossil fuels as the bloc’s economies continue to reel from the Iran war energy shocks is “a significant victory for Italy”, foreign minister Antonio Tajani said on Wednesday, hailing the move.
“The European Commission welcomes Italy’s proposals in favour of greater flexibility to tackle the challenges of the energy crisis. It’s another success for the Italian government and result of our credibility in Europe,” Tajani wrote on X.
The EU executive will allow member states to spend up to 0.3% of annual economic output (GDP) per year on measures to bolster their “structural resilience” to energy shocks – without breaching Brussels’ 3% of GDP fiscal limit – economy commissioner Valdis Dombrovskis, told reporters.
Countries wanting to use the additional budget flexibility on measures such as boosting battery storage capacity, subsidising electric vehicles, and increasing heat pump installations will need to activate the so-called national escape clause: a provision that allows capitals to spend an extra 1.5% of annual GDP on defence to meet higher Nato spending targets.
Italy’s prime minister, Giorgia Meloni, has repeatedly asked Brussels for additional fiscal flexibility to allow capitals to cushion the economic damage wrought by soaring oil and gas prices. Italy is currently subject to an excessive deficit procedure for breaching the bloc’s 3% ceiling and has not invoked the extra defence spending provision.
EU countries that have not used up their additional fiscal room are likely to face a “quite light” assessment procedure, Dombrovskis said. However, he warned that no country will be granted the ability to “subsidise fossil fuel use”.
