Italy to tap EU budget escape clause for 2027‑2028 energy aid

Italy announced it will use the European Union’s “escape clause” – a fiscal leeway originally granted for defence spending – to finance measures that will ease energy costs for families and businesses in 2027 and 2028. The plan, detailed in a statement from Prime Minister Giorgia Meloni’s office, received broad agreement from coalition partners.

The European Commission has allowed member states to allocate up to 0.3% of GDP, taken from the 1.5% defence‑related flexibility, toward investments that support the transition from fossil fuels to green energy. Meloni’s timing, a year before the 2027 general election, signals an effort to soften the budget deficit pressure – Italy’s target is a 2.9% deficit-to‑GDP ratio this year and 2.8% in 2027 – and to exit the EU’s excessive deficit procedure.

The move aims to help households and firms cope with higher energy bills while aligning with EU rules on fiscal discipline.