The Italian Government has officially asked the European Union to extend the national safeguard clause already provided for military spending to the energy emergency. The request was made by Prime Minister Giorgia Meloni through a letter sent to the President of the European Commission Ursula von der Leyen. The desire is for greater flexibility in public finances to finance interventions against high bills without increasing the pressure deriving from European rules on deficit and debt. The Italian proposal, however, does not seem to convince Brussels at the moment. The European Commission, while avoiding official positions, recalled that there are still tens of billions of euros available in European energy funds and not yet used by the Member States.
What is the national escape clause
The national escape clause, also known as the National Escape Clause, is an instrument provided for by the Stability and Growth Pact of the European Union. This measure allows member countries to temporarily deviate from the budgetary targets agreed with Brussels in the presence of exceptional circumstances or events with a strong impact on public finances.
In practice, states can temporarily increase public spending or record higher deficits without automatically incurring the sanctions provided for by European rules. However, the clause is granted only in specific cases and must be compatible with the sustainability of public finances in the medium term. In recent months the European Union has authorized the use of the clause for defense-related expenditure, especially after the increase in international tensions and geopolitical pressure linked to the war in Ukraine.
The Meloni Government’s request on energy
Italy now aims to apply the same flexibility to the energy crisis. In the letter sent to Ursula von der Leyen, Giorgia Meloni argues that energy security should be considered a European strategic priority like defense. According to the Government, the measure would make it possible to increase investments and aid against high energy prices without formally worsening the process of reducing the deficit envisaged by European rules.
The European Commission has not yet officially responded to the Italian proposal, but a clear message has arrived from Brussels. The spokesperson responsible for the Economy, Balazs Ujvari, recalled that there are still around 95 billion euros of European funds available for energy investments. The resources are part of already active instruments, such as NextGenerationEU, the European Cohesion Policy and the Modernization Fund.
According to the Commission, therefore, before asking for new flexibility on public finances, Member States should fully use the funds already available. Brussels also underlined that in recent months more flexible rules on state aid have also been introduced to facilitate investments in the energy sector. In fact, Italy is still subjected to an excessive deficit procedure because the public deficit exceeds the limit of 3% of GDP established by European rules. The Italian debt-to-GDP ratio actually remains among the highest in the European Union. Estimates indicate a value of around 137% in 2025, with possible further growth in 2026.
For this reason, some economic observers fear that the use of the escape clause to finance new energy expenditure could result in a further increase in public debt.
The precedents of the European clause and the possible effects
The National Escape Clause has already been used by several European countries to increase military spending. Among the states that have obtained the activation of the clause are Germany, Poland, Greece, Finland, Austria, Denmark and Portugal. Italy, despite having supported the need for greater flexibility on defense investments, has not yet formally requested the use of the clause for the military sector. According to what has emerged in recent months, the Government has chosen to focus the discussion with Brussels above all on the energy issue and on support for families and businesses.
If the Italian proposal were accepted, the Government could finance new interventions against high energy prices with fewer constraints on the deficit. This would mean more room for maneuver for economic support measures, bonuses or investments in the energy sector.
However, the issue of the reaction of the financial markets remains. An increase in public debt could in fact impact investor confidence and have effects on the spread and cost of Italian debt. The International Monetary Fund also recently invited governments to use instruments with caution that could further increase the burden of public debt.
