Italy has repeatedly urged Brussels to permit additional energy-related expenditures
The European Commission has loosened the EU’s fiscal rules to allow countries to reduce their dependence on fossil fuels, as the energy shock unleashed by the Iran war continues to reverberate throughout the bloc’s economies.
The EU executive will allow capitals to spend up to 0.3% of annual GDP per year on measures that strengthen their “structural resilience” to energy shocks without breaching Brussels’ 3% budget threshold, Valdis Dombrovskis, the bloc’s economy commissioner, told reporters.
The additional fiscal room will apply until 2028 and is capped at a total of 0.6% of annual output, he said.
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