The European Commission has listened to the requests of countries like Spain and, especially, Italy, and is leaning towards giving member states greater budgetary leeway to face the consequences of Iran’s energy crisis. The Community Executive is considering allowing countries to allocate 0.3% of GDP to energy-related expenses outside the EU budgetary framework, something it will detail this Wednesday in the fiscal package it planned to present.
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As Bloomberg has reported and this newspaper has been able to confirm, the proposal, which still needs to be specified in its details, would be similar to the opening of the escape clause for defense allowed last year, which meant that governments wishing to spend up to 1.5% of GDP to boost military spending could do so without being subject to the strict European fiscal rules, which prevent exceeding a deficit of 3% of GDP.
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This is a lifeline for Italian Prime Minister Giorgia Meloni, who has been one of the strongest voices calling for greater fiscal flexibility from Brussels in recent months, while the country struggles against inflationary pressures and very high levels of debt.
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