EU, Commission approval expected today for Italy's safeguard clause on energy and defense

The European Commission's green light for the Italian request to activate the national safeguard clause for defense and energy expenditure is expected today - according to what we learn from sources in Brussels. The positive feedback should arrive today, on the sidelines of the Eurogroup. According to what has been leaked, the community executive will then propose to the EU Council to activate the Nec which could, at that point, go to Ecofin for examination in November. While, on the request for flexibility on spending made by Prime Minister Giorgia Meloni, sources underline that the Stability Pact already provides that the impact of higher than expected inflation is taken into account when examining compliance with the spending paths of the Member States.

Today the Eurogroup

Meanwhile, today, as mentioned, the Eurogroup is meeting. And, precisely with regard to the Italian position on the issue of inflation, a senior EU official yesterday said that from today's Eurogroup we expect "ministers to express their opinions" and that the issue of inflation also "emerges". The issue is "how to include" the measures adopted by most EU states on high energy costs within the fiscal rules. “It's a broader question: to what extent do we want to change our fiscal framework in response to every shock that comes along?” he added, underlining the theme of “credibility”. On inflation "I don't yet expect operational conclusions": first the Commission will have to form a position and the ministers will have to express their opinion".

In-depth analysis

EU, sources: "There is already flexibility in the Pact on the effect of inflation"