European Commission approves fiscal flexibility for energy security

The European Commission has adopted an explanatory note clarifying how EU member states can utilize the national safeguard clause to extend fiscal flexibility to energy security measures. This mechanism allows for derogations from the Stability and Growth Pact rules, which typically govern national deficit and debt limits.

Following the conflict in the Middle East and the outbreak of war in Iran, the flexibility is intended to support measures that strengthen the structural resilience of the European energy system and accelerate the transition to non-fossil energy sources. The provision applies to budgetary measures decided after February 28, 2026, and must be financed at the national level with a direct impact on the budget.

To access this flexibility, countries must submit an initial list of planned energy security measures along with estimated costs to the Commission. The Commission will evaluate eligibility on a case-by-case basis. While a total limit of 1.5% of GDP for deviations from recommended net expenditure paths remains in place, specific limits for energy security measures are set at 0.3% of GDP annually and 0.6% of GDP cumulatively. This flexibility is available for the 2026-2028 period.