European Commission shifts energy policy from subsidies to green investment

The European Commission has established a new fiscal direction that ends the use of emergency energy subsidies to mitigate high utility bills. Under these revised budget guidelines, member states will no longer be permitted to exceed deficit limits to fund temporary measures such as excise duty cuts or the cancellation of system charges to offset energy price spikes.

Instead, the EU will allow deficit spending specifically for long-term investments in the energy transition. Permissible expenditures will focus on critical infrastructure, including transmission networks, energy storage systems, and energy communities. This shift aims to move public finance from reactive, emergency-based spending toward a structural reduction in fossil fuel dependency.

In Italy, previous government interventions to cushion the impact of the energy crisis cost over 90 billion euros. The new policy marks a transition from these direct consumer subsidies toward a policy of industrial modernization and sustainable energy consumption.