Italy asks EU for budget flexibility for defense and energy
The Italian government has sent the European Commission a letter to initiate the procedure for applying national escape clauses that provide greater budgetary freedom for investments in defense and energy. ANSA English reports, citing government sources.
Letter to the European Commission
Economy Minister Giancarlo Giorgetti informed the office of Prime Minister Giorgia Meloni about the letter on Thursday, the agency's sources said. ANSA also notes that the newspaper La Repubblica had previously reported on its dispatch.
The initial budget flexibility mechanism, introduced last year following Russia's invasion of Ukraine in 2022, allowed EU member states to increase their deficit by up to 1.5% of GDP over three years. It applied only to defense investments.
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Energy security spending
According to ANSA, Meloni's government successfully lobbied the European Commission to extend this mechanism to energy investments as well. This happened after the war with Iran caused fuel prices to rise.
In August, Giorgetti said that Italy would request the maximum level of budget flexibility: 0.6% of GDP for energy security and 0.9% of GDP for defense. Under pressure from US President Donald Trump, Italy and its NATO allies also committed to increase defense and security spending to 5% of GDP.
