BRUSSELS, 17th August, 2026 (WAM) -- The European Commission is opening the way for greater freedom and flexibility in spending for Member States that need to strengthen their energy security and accelerate the phase-out of fossil fuels.
The EU executive has adopted a notice clarifying how to extend the National Escape Clause, NEC—already used to allow countries to temporarily increase defence spending without automatically falling foul of European fiscal rules—to these measures. This possibility had been announced on 3 June in the European Semester 2026 Spring Package.
Only budgetary measures decided after 28 February 2026, financed at national level and having a direct impact on public finances, will be eligible for this clause. The measures must also be designed to achieve the greatest possible impact while minimising the cost to public finances. The European Commission will assess on a case-by-case basis whether individual measures meet the requirements.
The additional margin will, however, be limited by the caps set by the new European fiscal rules. The overall deviation from the net expenditure path recommended by the Council may not exceed 1.5% of GDP. Within this limit, the flexibility specifically earmarked for energy security will be capped at 0.3% of GDP per year and 0.6% cumulatively. This option will be available for the period 2026–2028.
The ball is now in the Member States’ court; they may formally request that the clause be extended to cover energy security as well. In their applications, they must provide an initial list of the measures they intend to fund and the associated estimated costs. The Commission will examine the applications and, provided the relevant criteria are met, may recommend that the Council approve them