Italy calls for EU budget flexibility on energy spending

Monday 27 April 2026 - 13:30

Italy has urged the European Commission to allow greater flexibility in budget rules so that energy-related spending can be treated similarly to defence expenditures. The proposal reflects mounting pressure on European governments to address rising energy costs affecting households and businesses.

Italian Foreign Minister Antonio Tajani emphasized that such a measure would give member states more room to implement financial support programs. For Italy, this flexibility could translate into nearly 35 billion euros in additional spending aimed at cushioning the economic impact of high energy prices.

The initiative comes at a time when Italy faces increasing fiscal challenges. The country is expected to become one of the most heavily indebted members of the eurozone, highlighting the delicate balance between supporting economic activity and maintaining fiscal discipline.

Despite these pressures, Italy has reaffirmed its commitment to European fiscal rules. The government aims to reduce its budget deficit to 2.9% of gross domestic product in 2026, staying just below the EU’s 3% threshold, compared with 3.1% the previous year.

The broader economic outlook remains uncertain, influenced in part by global geopolitical tensions that continue to affect energy markets and economic stability. Italy’s proposal signals a push within the EU to adapt fiscal frameworks to evolving economic realities, particularly in the context of energy security.