Eurogroup

Giorgetti: extend EU defence spending clause to measures against high energy prices

The Minister of Economy moves along the line indicated by the parliamentary majority and referred to the two existing flexibility clauses, the generalised and the national one. Dombrovskis: no EU initiative on extra-profits

by Rome Editorial Staff

4 May 2026

Il ministro dell'Economia e delle Finanze italiano Giancarlo Giorgetti arriva in vista della riunione dell'Eurogruppo a Bruxelles, in Belgio, il 4 maggio 2026. Secondo l'ordine del giorno dell'Eurogruppo, i ministri delle Finanze discuteranno delle prospettive economiche dell'area dell'euro, del coordinamento fiscale e dei lavori in corso volti a rafforzare la competitività e la stabilità finanziaria. EPA/OLIVIER MATTHYS EPA

3' min read

Translated by AI

Versione italiana

3' min read

Translated by AI

Versione italiana

Bringing expenditure to cope with energy price increases to the detriment of the most affected economic sectors under the EU safeguard clause, which allows a temporary deviation from budgetary requirements, in order to support defence spending. This is the central proposal made by Economy Minister Giancarlo Giorgetti to the Eurogroup. According to Giorgetti, 'if the situation were to continue to worsen, it would be appropriate to activate a general escape clause at EU level in order to obtain more budgetary space. If the necessary consensus for this solution could not be reached, a coordinated activation of national escape clauses would be the best alternative, with a strict commitment to maintain fiscal sustainability'.

Another option 'would be to extend, leaving the already envisaged ceiling unchanged, the application of the national safeguard clause for defence purposes to the Iranian crisis with regard to the negative consequences on the energy sector'. The latter is considered by the minister to be the most feasible solution, according to ministerial sources.

The two flexibility clauses

The economics minister moves along the line indicated by the parliamentary majority and referred to the two existing flexibility clauses, the generalised one and the national one. For the first one, there are actually no conditions for using it since the EU or the eurozone are not in recession. The second has been used for defence spending, but Italia has not yet requested it. The 'coordinated' use of the national clause (for expenditure against high energy prices) 'would be the best alternative, with a strict commitment to maintain fiscal sustainability. Its use would be temporary, limited in scope and targeted at the most exposed sectors, in line with the flexibility now envisaged by the Commission for the EU state aid framework. Such an approach would ensure a level playing field among Member States, allowing for targeted support while preserving the integrity of the single market'. For Giorgetti, 'measures should remain focused on mitigating the impact on the most affected sectors, in particular agriculture, fisheries, transport and energy-intensive industries, through proportionate and temporary support.

After that, the minister moved on to a third option: to extend the space of the defence clause to the expenses for tackling the high energy price "by invoking the national security issues already provided for in the 'temporary framework' approved last week by the EU Commission". Then Giorgetti indicated an interest in discussing 'selective revenue-raising measures': Italia supports the introduction at EU level of a tax on the extra profits of energy companies, as suggested by Italia and four other member states (Germany, Portugal, Austria and Spain) in a letter sent to the Commission.

Dombrovskis: No EU initiative on extra-profits

"taxation of extra-profits is a possibility: Member States can use it. At the moment, however, we are not envisaging or recommending any initiative at European level. Our assessment is that the past application of this measure during the previous energy crisis produced mixed results. However, if Member States are interested in introducing it at national level, the possibility certainly exists'. This was said by EU Economy Commissioner Valdis Dombrovskis at the press conference after the Eurogroup meeting.

"Today I met Italy's minister Giancarlo Giorgetti to discuss these issues, and the topic was also raised during the Eurogroup. Different Member States have expressed different views on the appropriate fiscal policy response. Of course we continue to work closely with the Member States, including Italia, to develop this fiscal policy response. But for the time being, our advice is to stick to temporary and targeted measures with limited fiscal impact'.