EU finance ministers debate expanding Greece's fiscal escape clause amid energy price surge

Greece's request to widen its national escape clause, originally limited to defence, now includes measures to counter soaring energy costs and is expected to be approved by EU finance ministers in Luxembourg today. The country was the first to tap the Commission's fiscal flexibility earlier this summer, using it to help households and businesses with higher energy bills. Prime Minister Kyriakos Mitsotakis sent a letter to Commission President and Eurogroup president Kyriakos Pierrakakis, seeking EU solidarity funded by unexpected VAT gains from price hikes.

Italy's Prime Minister Giorgia Meloni submitted a comparable letter, urging that part of the extra tax revenue be used for temporary, targeted relief. While some ministers, such as those from the Netherlands and Belgium, oppose changing fiscal rules, others like Germany's Lars Klingbeil propose a Europe-wide windfall tax to lower energy prices. The EU Commission's vice-president Valdis Dombrovskis cautioned that broad measures would strain public finances and could raise energy demand, but acknowledged short-term aid should focus on the most vulnerable.