EU Boosts Funds for Energy Security

The European Commission has adopted new guidelines allowing member states to expand the scope of the "State of Emergency Clause" in financial rules to include funding for measures to enhance energy security, accelerate the phase-out of fossil fuels, and increase defense spending during the period from 2026 to 2028. It stipulates that these measures must be nationally funded, directly impact the budget, and be implemented after February 28, 2026. There is a maximum limit for energy security measures of 0.3% of gross domestic product (GDP) annually and 0.6% cumulatively within the overall ceiling of 1.5%. Member states are invited to submit requests for review of the measures and costs before presenting them to the European Union Council. The guidelines are expected to be published soon in the Official Journal.

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