EU considers fiscal flexibility requests from Greece and Italy regarding energy costs

The European Commission is currently evaluating requests from Italy and Greece to trigger national escape clauses to address rising energy costs and inflation. European Commission economic spokesperson Balazs Ujvari confirmed that Italy submitted its formal request approximately two weeks ago, while Greece has been advocating for such a measure since August.

The discussions center on the potential expansion of the national escape clause, currently reserved for defense expenditures under the SAFE program, to include energy-related costs. This proposal aims to grant member states greater fiscal flexibility to manage economic pressures. While the Commission has already expressed openness to this extension since early summer, the specific requests from Prime Minister Kyriakos Mitsotakis and Prime Minister Giorgia Meloni are now under formal assessment ahead of the upcoming European Council meeting.

Currently, the European Commission is reviewing the Italian submission and considering the broader proposal to provide member states with the necessary fiscal space to implement energy support measures. No final decision has been announced, but the policy shift remains a key topic for member states seeking relief from volatile energy prices.