EU Set to Give Budget Leeway to Cushion High Energy Costs (1)

The European Union is weighing plans to grant member states additional fiscal flexibility to cope with the impact of high energy costs due to the Iran war.

The proposal under discussion by the European Commission, the EU’s executive branch, would allow governments to spend around 0.3% of GDP on energy-related spending outside the EU’s fiscal framework, according to people familiar with the discussions.

Read More: EU Leaders Seek More Energy Help After Measures Fall Short

The measure would function as a so-called escape clause, similar to the defense carve-out that member states were previously granted, said the people, who spoke ...