The European Commission has adopted a notice providing member states with further guidance on the possibility to extend the coverage of the National Escape Clause (NEC) for defence to also include energy security measures. The notice sets out the procedure for requesting fiscal flexibility, its treatment under the EU fiscal surveillance framework and the monitoring of its use.
The possibility to extend the NEC to accommodate energy security measures was announced on 3 June 2026 in the European Semester Spring Package and follows the ongoing conflict in the Middle East. The flexibility is intended to support measures that strengthen the structural resilience of the European energy system and accelerate the transition away from fossil fuels.
Only budgetary measures decided after 28 February 2026 will qualify for the flexibility. Eligible measures should be nationally financed with a direct budgetary impact. They should also be designed to maximise their impact while minimising the fiscal cost. The notice includes an illustrative and non-exhaustive list of potentially eligible measures. The Commission will then assess the eligibility of measures on a case-by-case basis.
The flexibility will also have to preserve fiscal sustainability. The existing overall cap of 1.5% of Gross Domestic Product (GDP) for the allowed deviation from the recommended net expenditure path under the NEC will remain in place, with dedicated caps for energy security measures set at 0.3% of GDP per year and 0.6% of GDP cumulatively inside the overall cap of 1.5% of GDP. The flexibility will be available for the period 2026 to 2028.
Expenditure exceeding the applicable caps will remain subject to the standard compliance assessments under the EU fiscal framework, ensuring that the additional flexibility goes hand-in-hand with the safeguard of sound public finances and fiscal sustainability.
In terms of next steps, the notice will be made publicly available in the Official Journal of the EU in the coming days.
Member states are invited to come forward with their requests to extend the coverage of the NEC.
In their requests, member states are expected to provide an initial list of planned energy security measures which they would like to benefit from the flexibility, with their estimated budgetary cost.
After assessing a request, in accordance with the requirements of Article 26 of Regulation 2024/1263, the Commission can recommend to the Council to approve it.
