The European Commission is inclined to accept, albeit partially, the request made by the Meloni Government to extend the flexibility of the Stability Pact also to energy-related expenditure. According to what emerges from Brussels, the executive led by Ursula von der Leyen is about to grant member states a fiscal margin for energy investments equal to 0.3% of annual GDP in the three-year period 2026-2028, with a maximum limit of 0.6%.
For Italy it would translate into approximately 6.8 billion euros per year, with the possibility of reaching over 13 billion in total. However, the opening does not represent an additional exemption compared to that already provided for the defense.
Dear energy, Brussels opens up to Italy
The resources allocated to energy can be accounted for exclusively within the national safeguard clause which allows the countries of the Union to temporarily deviate from the constraints of the Pact for investments linked to security and defence, up to 1.5% of annual GDP.
The EU’s position arises from the attempt to find a balance between Italian requests and the need to preserve the sustainability of public finances.
In fact, Brussels continues to frown upon generalized measures to support energy consumption, considered potentially capable of altering demand and influencing the trend of inflation.
Energy, yes to investments
For this reason the flexibility will only concern investments. Interventions that could fall under the new scheme include:
- incentives for the purchase of electric vehicles;
- batteries and solar panels;
- investments in electricity networks;
- storage systems;
- energy efficiency programs;
- expansion of the production capacity of clean energy.
Therefore, measures that help families and businesses in the immediate future are excluded, such as cutting the price of petrol and diesel, one of the Government’s flagships in response to the crisis in the Strait of Hormuz.
The Commission’s response will be included in the Spring package of the European Semester. However, a written and formal response to the letter sent in recent days by Prime Minister Giorgia Meloni is not expected, although a telephone discussion cannot be ruled out. The position of the European executive will therefore be expressed through the documents of the Semester and the indications contained in the new flexibility framework.
The EU, for its part, continues to remind Italy and other member states of the existence of further financial instruments available at community level, including funds not yet used and possible modifications to existing programmes.
Infringement procedure
Even the medal of the flexibility of the Stability Pact has its downside: in the past year Italy was unable to exit the infringement procedure due to the deficit/GDP ratio at 3.1% due to the Superbonus. For the current year, Eurostat, when it will have to certify Italian indebtedness, will also take into account the increased expenses authorized by the EU. In the event of a deficit/GDP ratio again above the 3% limit, the exit from the infringement procedure will be postponed for one year.
The Safe dossier
Finally, the Safe dossier remains on the table, the European fund which makes loans available to Italy for approximately 14.9 billion euros intended for strengthening defense capabilities. The Commission awaits the definitive response from the Meloni Government on this issue.
