Commission adopts guidance on fiscal flexibility for energy security measures
The Commission has adopted a notice providing Member States with further guidance on the possibility to extend the coverage of the National Escape Clause (NEC) for defence to also include energy security measures. The notice sets out the procedure for requesting fiscal flexibility, its treatment under the EU fiscal surveillance framework and how its use will be monitored. The flexibility is intended to support measures that strengthen the structural resilience of the European energy system and accelerate the transition away from fossil fuels.
Only budgetary measures decided after 28 February 2026 will qualify for the flexibility. Eligible measures should be nationally financed with a direct budgetary impact. The Commission will assess the eligibility of measures on a case-by-case basis, although a non-exhaustive list of potentially eligible measures will be included in the notice.
The flexibility will also have to preserve fiscal sustainability. The existing overall cap of 1.5% of Gross Domestic Product (GDP) for the allowed deviation from the recommended net expenditure path under the NEC will remain in place, with dedicated caps for energy security measures set at 0.3% of GDP per year and 0.6% of GDP cumulatively inside the overall cap of 1.5% of GDP. This new possibility will be available for the period 2026 to 2028.
We will inform you as soon as the notice is published in the Official Journal of the EU.
For more information, see the Commission’s PR.