In light of the ongoing energy crisis, the European Commission is planning to further relax the EU’s debt rules. The Brussels authorities announced on Wednesday that member states taking actions to strengthen Europe’s energy supply security and accelerate the transition away from fossil fuels will be allowed to apply for “limited fiscal flexibility” under the current national escape clause for defense expenditures. According to the Commission, if a member state applies, the scope of this clause can be expanded to include measures undertaken since February 2026 aimed at reducing reliance on imported fossil fuels.
Within the framework of the existing ceiling of 1.5% of GDP for additional defense spending under the national escape clause, a special annual ceiling of 0.3% of GDP and a cumulative ceiling of 0.6% of GDP will specifically apply to energy resilience measures for the period 2026-2028. The EU Commission emphasized that this approach ensures that “all guarantees for the sustainability of public finances remain fully intact”.
