Europe’s independent budget watchdog has pushed back against the EU Commission’s plans to loosen fiscal rules for energy-related spending.
“The energy shock is real, but it calls for transformation, not stimulus,” said Pieter Hasekamp, chair of the European Fiscal Board (EFB), in a statement published Wednesday (10 June)
He also warned that looser budget rules risk repeating the policy mistakes of the 2022–2023 energy crisis, when subsidies stayed on long after the worst of the crisis was over.
“Support for households and businesses must be temporary, targeted, and offset, not a backdoor to broader loosening,” he added.
The board’s annual assessment of the appropriate fiscal stance for the euro area in 2027 lands just days after the commission announced plans to extend the so-called ‘escape clause’ for energy investments.
