Italy seeks EU nod to use fiscal leeway to help families, not just green transition

Italy Urges EU to Allow Fiscal Flexibility for Families Amid Energy Crisis

Italy Seeks EU Budget Leeway to Address Energy Cost Surge

ROME, Oct 12 (Reuters) - Italy is in talks with the European Commission to use part of the budget leeway provided by the so-called "National Escape Clause" (NEC) to help families cope with surging energy costs, Economy Minister Giancarlo Giorgetti said on Tuesday.

Understanding the National Escape Clause (NEC)

The NEC allows EU countries to temporarily hike deficits to ​lift defence spending and to pay for investment that helps the transition from fossil fuels to green energy.

Calls for Greater Flexibility in EU Budget Rules

• Addressing lawmakers on Italy's multi-year budget plan, Giorgetti called for greater flexibility on the European Union's budget rules

Support for Families and Businesses

• "We believe that the NEC should, especially at this early stage, provide selective and temporary support to families and businesses facing difficulties due to rising energy prices and inflation," Giorgetti said

Ongoing Discussions with EU Authorities

• "Therefore, a sort of discussion is currently underway and will continue until EU authorities adopt the NEC for Italy, to determine which measures to include," he added

Italy's Fiscal Strategy and Future Plans

Exiting the Excessive Deficit Procedure

• Giorgetti reiterated that the government was working to ensure Italy's exit from the EU's ongoing infringement procedure for excessive deficit "next spring"

Upcoming 2027 Budget Announcement

• The government will unveil its 2027 budget this month, the last under Prime Minister Giorgia Meloni before a national election due next year

(Reporting by Giuseppe Fonte, Editing by Xevi Fontdegloria)