The OK has been received from the European Union and Italy now has more budgetary margins for defense and energy security. The Ecofin Council, which brings together the Economy and Finance ministers of EU countries, has given the formal green light to the activation of the national safeguard clause, i.e. the Nec, requested by the Meloni government.
A decision thanks to which some defense and energy expenditure can be treated with greater flexibility in the calculation of the deficit. According to the provisions of the Budget, the additional space reaches up to 0.6% of GDP in each of the years 2027 and 2028.
However, discussions with Brussels are still ongoing regarding the energy measures that can be included. It is therefore important to understand what was actually decided by Ecofin, what the national safeguard clause is and how much spending space our country gets.
What is the national escape clause
The green light from European ministers was awaited. This decision allows Italy to use the flexibility clause in calculating the deficit for expenses related to defense and energy security, as mentioned. An application submitted on 11 September 2026, which has now received formal Council approval.
The document defines the perimeter of eligible expenses, while discussions continue with the European Commission regarding the energy part, so as to establish in detail the measures that may fall within it. The concept of the national safeguard clause is therefore crucial: without knowing it, in fact, it is not possible to understand what is happening.
The Nec is an instrument provided for by European budget rules. It allows a country to deviate, within certain limits, from the spending path agreed with Brussels. All without major exits being considered a violation of the rules.
In fact, the clause does not represent European funding or a non-repayable contribution. The resources remain the responsibility of the State, but part of the spending for certain sectors, in this case defense and energy, can be supported without affecting compliance with budget constraints.
How much Italy can spend
According to the provisions of the 2027 Budget, the clause will allow spending to increase up to 0.6% of GDP in both 2027 and 2028. We are talking about 0.3% of GDP for defense and 0.3% for energy security.
In the request sent to Brussels, the government indicated an overall increase in defense spending of up to 0.9 percentage points of GDP by the end of 2028. The starting point is the level of 1.3% of GDP recorded in 2024, which remained essentially stable until 2026.
Defense: what falls under flexibility
According to the document approved by European ministers, the increase in military spending will concern:
- new multi-annual investment programs;
- higher ongoing expenses, including those for military personnel and operating costs.
Military purchases financed with European loans from the Safe program will also benefit from the flexibility. Furthermore, for defense the flexibility may also extend beyond 2028 for deliveries of equipment purchased with contracts signed by that date.
Energy security: the interventions presented
For energy security, the government has presented an initial list of interventions, which includes:
- the electrification of homes;
- improving the energy efficiency of public and private buildings, including schools, universities and healthcare facilities;
- the installation of photovoltaic systems;
- targeted incentives for investments in decarbonisation;
- interventions for railways, public transport and sustainable urban mobility;
- the strengthening of renewable energy production, storage systems, grid flexibility and biofuels.
The individual measures will however have to pass the verification of the European Commission, which will evaluate their admissibility and impact on public finances. Only after this step will it be clear which interventions will actually benefit from the flexibility.
