EU Adds Energy Investments to Fiscal Flexibility Rules
Dombrovskis said that member states could request an expansion of the existing National Escape Clause, which allows temporary deviations from EU fiscal rules under exceptional conditions.
“Upon request by a member state, the scope of the current National Escape Clause for defense can be broadened,” he said during a press conference while presenting the European Semester 2026 Spring Package.
He explained that, in addition to the existing flexibility framework, countries could apply an annual limit of 0.3% of GDP for energy support measures, within the broader 1.5% of GDP ceiling already allowed for extra defense spending.
The measure would apply from 2026 to 2028, with a total cap of 0.6% of GDP over the three-year period.
Dombrovskis also noted that countries which have already fully used the escape clause for defense spending could be allowed to exceed the 1.5% GDP threshold, subject to an additional sustainability review.
He added that the flexibility would begin from February 2026 and would include initiatives aimed at reducing reliance on fossil fuels.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
