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EU fiscal board criticises loosening EU rules over energy shock

The European Fiscal Board, ​the EU's independent watchdog, criticised on Wednesday the European Commission's move to allow some of ‌the fiscal leeway granted last year to governments for defence, to be spent on the transition to clean energy. Last year, the Commission said EU governments could spend an extra 1.5% of GDP each year for four years on defence capabilities to deter ​an attack from Russia, without getting into trouble with EU fiscal rules that set the maximum ​budget deficit at 3.0% of GDP. This is made possible by invoking a national ⁠escape clause for events outside the control of the government. [....]