MNI: Italy Asked For EU Fiscal Escape Clause - Source

Italy and Slovenia asked for the activation of the General Escape Clause from the EU's fiscal rules at Monday's meeting of euro area finance ministers, MNI was told by a source at the meeting. 

The call came as ministers discussed policy options to respond to the surge in oil and gas prices, such as energy price caps and the release of emergency oil reserves.  

Economy Commissioner Valdis Dombrovskis told ministers that the legal conditions to apply the escape clause have not been fulfilled, pointing out that under the EU's fiscal rules, there must be a "severe economic downturn" in the Union or the euro area as a whole. (See MNI: EU Fiscal Consolidation Getting Harder - Commission)

"Slovenia and Italy asked as well, but Valdis (Dombrovskis) stressed that the legal conditions are not fulfilled," one source said. 

The GEC was last activated in response to the Covid epidemic in 2020 and deactivated it in 2023. National Escape Clauses to allow some countries to increase defence spending have been in force since last year.