Business · Economy · 16 hrs ago
EU approves Italy’s budget flexibility for defence and energy
EU finance ministers approved Italy’s budget flexibility clause for defence and energy security.
The clause gives Italy room to raise spending without treating the extra amounts in the usual way under its recommended net spending path.
Italy can use flexibility worth up to 0.6% of GDP in each of 2027 and 2028, split equally between defence and energy security.
Defence spending could include military equipment, personnel and operating costs, while energy measures could support renewables, building efficiency and public transport.
The change matters because it lets Italy increase spending in both areas while the government says it will protect the sustainability of public finances.
The European Commission will assess energy measures for eligibility and their effect on public accounts.
Italy will provide updates every six months, and flexibility for some military equipment deliveries may continue beyond 2028 if contracts are signed by then and the overall limit is respected.
The EU’s Ecofin Council approved Italy’s request to use a budget flexibility clause for defence and energy security measures.
The clause allows spending to rise by up to 0.6% of GDP in each of 2027 and 2028.
That amount is split evenly, with up to 0.3% of GDP for defence and 0.3% for energy security in each year.
Eligible energy measures include renewable energy, building efficiency, railways and sustainable transport.
The European Commission will assess individual energy measures for eligibility and their impact on public finances.
- Who
- The EU’s Ecofin Council approved the clause for Italy.
- What
- Italy can use greater budget flexibility for defence and energy security spending.
- When
- The approval was reported on 9 November 2026.
- Where
- At the EU’s Ecofin Council. The sources do not state a meeting location.
- Why
- The flexibility is intended to support Italy’s defence capabilities and energy security while respecting the recommended net spending path and public-finance sustainability.
This story does not have two clearly opposing sides.
The Italian government submitted its request for the national escape clause.
The EU’s Ecofin Council approved the activation of the clause for Italy.
The budget plan provides for flexibility of up to 0.3% of GDP per year for defence and 0.3% for energy security.
- Annual flexibility
- Up to 0.6% of GDP in each of 2027 and 2028
- Defence allocation
- Up to 0.3% of GDP in each of 2027 and 2028
- Energy security allocation
- Up to 0.3% of GDP in each of 2027 and 2028
- Defence spending request
- Increase of up to 0.9 percentage points of GDP by the end of 2028
- Energy measures review
- The European Commission will assess eligibility and impact on public finances
4 sources
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What people are saying
It allows us to strengthen defence capabilities and energy security, while respecting the recommended net spending path and safeguarding the sustainability of public finances.
We strongly and proudly claim the inclusion of energy in the NEC. It was an Italian battle that will be useful to all European countries that wish to make use of it.