Energy crisis: Italy is allowed to incur more debt due to the energy crisis

Brussels. Because of high defense spending and the energy crisis, Italy is allowed to take on more debt than EU rules actually allow. At a meeting in Brussels, EU finance ministers voted to allow Rome to use a corresponding exemption in the EU debt rules, according to a statement.

In the spring, the Commission proposed expanding an existing exception rule for defense in the strict EU rules for debt to include investments in the energy transition. These should include measures that have been implemented since February 2026 and will reduce dependence on imported fossil fuels.

18 other EU states are already making use of this special rule for more permitted debt. According to the Commission, in April 2025 Germany was the first EU country to want to use the exception rule to increase defense investments. Apart from Italy, only Greece is currently using the clause for investments in the energy transition.

In the EU, there are actually strict upper limits on the debt levels and new borrowing of the member states in order to ensure sound finances. The regulations stipulate that the debt level of a member state must not exceed 60 percent of economic output. At the same time, the annual deficit must be kept below three percent of economic output.

With the exception rules, member states can spend up to 1.5 percent of gross domestic product (GDP) on defense over four years - without worrying about criminal proceedings. Because of the energy crisis, a maximum of 0.3 percent of GDP can now be used within this framework in the current year as well as in 2027 and 2028 for expenses such as promoting photovoltaic systems or investments in energy efficiency. An upper limit of 0.6 percent must be adhered to for the three years overall.