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Story summary
- European Commission approved a temporary escape clause allowing member states to spend up to 0.3% of GDP on energy projects without breaching EU fiscal rules.
- Prime Minister Giorgia Meloni warned she would withhold Italy’s support for EU defence financing unless fiscal rules were relaxed for energy spending.
- IMF’s Helge Berger cautioned that cutting energy taxes could weaken price signals and urged targeted support instead of broad subsidies.
