Deficit: Ecofin expected to give the green light to Italia on Monday regarding the use of flexibility in the defence and energy sectors
(Il Sole 24 Ore Radiocor) - On Monday afternoon, the Ecofin is expected to give the go-ahead to Italia’s request to use the national safeguard clause for defence funding, within the framework of the budgetary rules. The activation of this clause will also allow measures to be taken to strengthen energy security. The clause covers a four-year period and allows for maximum flexibility of 1.5 per cent of GDP compared with the agreed net expenditure paths for the Member State, due to the increase in defence spending. For the entire duration of the clause’s activation, Member States are required to maintain their commitment to implementing the revised economic governance framework. Italia has decided to use a total of 1.2 per cent of GDP, with 0.6 per cent allocated to energy (approximately 14.4 billion) and the same amount to defence and security.
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