Official green light from theEurope derogations from the Stability Pact also for the 'energy. Brussels proposes "a tax flexibility limited” by extending the scope of the National Defense Safeguard Clause, announces the European Commissioner for Economy Valdis Dombrovskis, which confirms the possibility of using up to 0,3% of GDP annually in 2026, 2027, and 2028, with a cumulative limit of 0,6% over the three-year period. The Commissioner specifies that the resources may be used for "investments" and "family support" in renewable energy, not for excise duty cutsThe Minister of Economy, Giancarlo Giorgetti, he says he is satisfied: "The Commission accepts our proposals". Meanwhile, six EU recommendations to Rome on accounts, energy, work and healthcare: “Accelerate on land registry reform".
EU launches package for tech, chip, and AI sovereignty
The European Commission also presented today the European package on technological sovereignty, a set of measures to strengthen the EU's capacity in semiconductors, artificial intelligence, cloud, and open sourceThe President of the European Commission Ursula von der Leyen He said that Europe “cannot afford to depend on others for essential technologies,” stressing the need to transform Europe’s strengths into “technological sovereignty.”
The package includes two legislative proposals – Chip Act 2.0 e Cloud and AI Development Act – in addition to the new open source strategy and a roadmap for digitalization and AI in the energy sector. The goal is reduce the EU's structural dependencies, support the deployment of AI, and ensure that Europe can develop and secure critical digital technologies. The Chip Act 2.0 aims to strengthen the production and design of advanced semiconductors, accelerate authorizations, create a European brand of excellence and support strategic investments and projects, in a market where AI-related components could exceed 70% by 2030.
Data center: EU aims to triple capacity in 5-7 years
The law on cloud and AI aims to triple the capacity of European data centers in the next five to seven years, simplify the deployment of sustainable infrastructure, and introduce a single framework for assessing digital sovereignty, protecting critical applications and sensitive data. The open-source strategy will strengthen Europe's digital autonomy by expanding European alternatives in key areas such as cloud, AI, internet, cybersecurity, and semiconductors, supporting skills, startups, and digital infrastructure maintenance.
The roadmap for energy and AI aims to sustainably integrate data centers into the European energy system, accelerate the deployment of digital and AI solutions for more efficient networks and foster sovereign AI models based on European data. The legislative proposals will now be examined by the European Parliament and the Council. The Commission also plans to launch a call for proposals for the AI Gigafactory, following preliminary approval from the European Joint Undertaking for High-Performance Computing.
EU: Italy remains under excessive deficit procedure
But that's not all. Because theItaly remains under excessive deficit procedure. It certifies it European Commission in the spring package of the European Semester, published today. "For Italy, net expenditure growth in 2025 was above the recommended ceilings. However, cumulatively, net expenditure growth in 2024-2025 was only marginally above the recommended ceilings, and Italy is expected to correct its excessive deficit in 2026, in line with the deadline set by the Council," the European Commission document reads.
Il Italy's public deficit, the European executive reiterates, decreased from 3,4% of GDP in 2024 to 3,1% of GDP in 2025. The European Commission's economic forecasts predict a deficit of 2,9% of GDP in both 2026 and 2027. "The decrease in the deficit in 2026 mainly reflects lower spending on tax credits for housing renovation, while other spending items, including public investment, are expected to continue to increase, along with tax revenues," the document concludes.
EU calls Italy to account over excise duty cuts
And again. The European Commission criticizes, in its macroeconomic recommendations for the European Semester, the cut in fuel excise duties carried out by the Italian government since the outbreak of the war in Iran"Since the outbreak of war in the Middle East in February 2026, Italy has adopted fiscal policy measures to mitigate the impact of high energy prices on households and businesses," the report for Italy reads.
These include an untargeted reduction in fuel excise duties, expiring on May 22, 2026, and a tax credit for road transport, fisheries, and agriculture businesses, expiring on May 31, 2026. The European Commission adds that "the experience of the 2022-2023 energy crisis has shown that broad, untargeted measures entail high fiscal costs and are socially and economically inefficient."
The European executive recommends that Italy ensure that " any measures taken to mitigate the impact of rising energy prices are temporary, aimed at protecting vulnerable households or addressing the needs of energy-intensive businesses, preserve incentives for energy saving and ensure that their fiscal cost is compatible with the commitments set out in the EU fiscal framework”.
Energy prices: how much are Italy's measures worth according to the EU?
The European Commission, therefore, confirms the rumours leaked in recent days by announcing the possibility of extending the safeguard clause of the Stability Pact activated for defence spending to investments in the green and energy transition, for a maximum of 0,3% of GDP per year (and 0,6% over the three-year period 2026-28). "Measures that could be considered include support for households and businesses to reduce dependence on fossil fuels and promote decarbonization, measures that accelerate the electrification of end-use sectors, investments in electricity grids, electricity storage (e.g., batteries), energy savings, and the expansion of clean energy capacity," the Commission states in the European Semester macroeconomic recommendations. This flexibility will include measures adopted since February 2026.
“The guarantees of fiscal sustainability would remain fully in force. The existing limit on flexibility, up to 1,5% of GDP in additional spending, within the national defense safeguard clause, would remain unchanged. Therefore, even if the scope of flexibility could be expanded, the risk to fiscal sustainability would remain limited,” the European executive maintains.
“Member States will have the opportunity to request in the coming months extending the scope of their current national safeguard clause“, it states, while “Member States that have not yet requested the activation of the national safeguard clause for defence”, such as Italy, “can do so at any time”.
"The Commission will evaluate all requests received to ensure that the extension or activation of the clause does not jeopardize fiscal sustainability in the medium term," it is assured. Furthermore, the European executive “will provide further clarification to Member States in due time regarding procedural and operational requirements, including reporting by Member States of sufficiently detailed data and information to monitor and assess the eligibility of proposed measures to support strengthening the structural resilience of the European energy system and accelerating the transition away from fossil fuels, as well as to carry out fiscal surveillance”.
EU, what Commissioner Dombrovskis said
“Considering Italy's strong interest in this fiscal flexibility solution, I can assume that Italy will be interested in using it". The commissioner states this Dombrovsky in an interview with a select group of European media, Handle including, with regard to the initiative announced by the EU Commission to expand the use of the National Defense Clause by 1,5% of GDP over four years, including investments of up to a maximum of 0,6% in the three-year period 2026-2028.
(Last updated at 15.45pm)
