Dombrovskis opens up to EU flexibility on energy: up to 0,6% of GDP to reduce dependence on fossil fuels.

The European Commission has decided to extend the scope of the National safeguard clause including expenditure related to energy security, thus opening up a new form of fiscal flexibility within the framework of the Stability Pact. The announcement came on the occasion of the publication of the Spring Package of the European Semester 2026 and represents a response to requests made by several Member States, including Italy, in a context marked by a persistent energy crisis and strong cost pressures for families and businesses.

A measure linked to the reduction of fossil fuels

The Brussels proposal is closely linked to the goal of reducing the European Union's dependence on fossil fuel imports. The Commission has clarified that the new flexibility will finance measures capable of strengthening the structural resilience of the energy system, accelerating the transition to more sustainable sources. However, the framework remains bound by precise limits: it is not a generalized relaxation of budgetary rules, but rather a targeted, temporary fiscal space subject to evaluation by the European institutions.

The 0,3% GDP limit for energy

Within the already foreseen maximum ceiling of 1,5% of GDP for additional defence-related expenditure, the Commission has introduced a dedicated space equal to 0,3% of GDP per year for the period 2026-2028. However, the cumulative limit over the entire three-year period will remain equal to 0,6% of GDP, thus preventing Member States from automatically adding 0,3% for each of the three years until reaching a higher quota. The measure therefore fits within the existing scope of the clause, without exceeding its overall framework.

No general cuts to bills

Brussels has set a clear limit on the use of resources: the additional fiscal space cannot be used to directly subsidize utility bills or to finance untargeted measures, such as across-the-board cuts in excise duties or measures that could support fossil fuel consumption. According to the Commission, an indiscriminate reduction in energy costs would risk increasing consumption and counteracting the energy transition objective.

Investments in renewables, networks and families are permitted.

Instead, resources may be directed toward investments and measures with a structural impact on energy security. Compatible interventions include strengthening electricity grids, supporting the development of renewable energy, incentives for the installation of solar panels, energy storage batteries, heat pumps, and tools to encourage the transition away from oil and gas. The Commission has hinted that family support measures may also be eligible, provided they are linked to the transition and not to continued dependence on fossil fuels.

Dombrovskis: Limited flexibility due to a persistent crisis

The European Commissioner for Economy, Valdis Dombrovskis, explained that the energy crisis is proving longer and more complex than expected, with negative effects on fuel prices, economic growth, and inflation. Therefore, the Commission is proposing "limited fiscal flexibility" for measures that accelerate the transition away from fossil fuel dependence. The stated objective is to strengthen the structural resilience of the European energy system without compromising the sustainability of national public finances.

Procedure with request from the States and EU evaluation

Interested member states will have to submit a formal request to activate the clause's extension. The Commission will assess each country's situation, the impact of the proposed measures, and their compatibility with fiscal sustainability rules before submitting the dossier to the Council for final approval. Countries that have already activated the defense clause will also have to notify Brussels of their intention to use the new extension for energy. Those who decide to activate it now will still be subject to the requirement to allocate only 0,3% of GDP to energy measures, with the remainder earmarked for defense.

Italy interested in the new tax window

The Commission's decision is of particular concern to Italy, which, along with other countries, had called for greater flexibility in the face of the energy crisis. Dombrovskis acknowledged Italy's strong interest in this solution, suggesting that Rome could be among the countries willing to utilize the available space. However, the option granted by Brussels is not automatic: the government will need to identify measures consistent with European criteria, avoiding widespread interventions on energy costs and focusing on projects capable of impacting the transition.

Giorgetti: Italian proposals accepted

The Minister of Economy and Finance, Giancarlo Giorgetti, expressed satisfaction with the Commission's decision, emphasizing that Brussels has accepted proposals that until a few months ago seemed unlikely to be feasible. The Minister of Economy and Finance described the outcome of "long, serious, and confidential" work and explained that, once the limits on its use have been specified, the ministry will reserve the right to formulate targeted proposals to protect businesses and families. The assessment, he added, will also need to take into account the Commission's latest estimates and the recommendations addressed to Italy.

European recommendations on Italian accounts

As part of the 2026 European Semester, Brussels has addressed a series of recommendations to Italy confirming the need to maintain prudent public finance management. The Commission calls on Rome to continue correcting its accounts, accelerate the implementation of the NRRP and cohesion funds, strengthen public administration and justice, support research and innovation, and intervene in the labor market, education, healthcare, and social inclusion. On the energy front, the EU also emphasizes the need to accelerate the deployment of renewables.

The issue of electricity prices in Italy

Brussels has long highlighted Italy's particular exposure to energy costs, linked to its structural dependence on gas-fired power plants and one of the highest electricity prices in the European Union. This situation represents a brake on both households and industry, hindering electrification and the competitiveness of the production system. The Commission therefore believes it essential to accelerate investments in renewable energy, storage, and simplified permits, including through the full implementation of planned reforms at the national and regional levels.

The Democratic Party: A step forward, but a common European response is needed.

The Democratic Party (PD) also commented on the decision, welcoming the European Commission's openness to flexibility for energy investments. Antonio Misiani, the Democratic Party's head of economics, and Annalisa Corrado, the national secretariat's head of environment, called the measure a step forward, while reiterating the need for a broader community initiative based on joint investments financed by European debt. For the PD, the flexibility granted by Brussels does not solve the problem, and the government will have to make up for lost time in managing the energy transition.

A balance between support and budgetary discipline

The European Commission's decision seeks to reconcile two needs: on the one hand, supporting member states in responding to the energy crisis, and on the other, preserving the credibility of fiscal rules and the sustainability of public debt. The new flexibility could offer useful margins to Italy and other affected countries, but its use will be restricted to selective, temporary measures consistent with the energy transition. The challenge now shifts to national governments, which are called upon to transform the leeway granted by Brussels into concrete, effective interventions compatible with European constraints.