European Commission says extra budget flexibility already been given – World

The European Commission said EU countries already have access to additional leeway under the bloc’s fiscal rules, responding to Italian Premier Giorgia Meloni’s announcement that she had asked for more flexibility due to rising inflation.

Commission spokesperson Paula Pinho told reporters that member states have been granted extra room in the application of budget rules and noted that the Commission had not yet received Italy’s letter.

Rome has previously pushed for broader scope to support strategic investments. The Commission has already allowed extra spending on energy-related measures amid higher fuel costs linked to the Iran war, following an earlier decision that gave countries the option to use an escape clause permitting additional deficits of up to 1.5% of GDP over three years for defence investments.

Italy’s Economy Minister Giancarlo Giorgetti said the government intends to seek the maximum flexibility available: 0.6% of GDP for energy security and 0.9% for defence.

The Commission’s stance underscores that existing mechanisms are in place for targeted deviations within the EU fiscal framework. Any formal evaluation of Italy’s request would proceed once a detailed submission is received.