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Market Chatter: European Commission Discusses Temporary Fiscal Exemption for Energy Spending

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The European Commission is considering a temporary fiscal exemption that would let member states direct about 0.3% of gross domestic product toward energy support measures, Bloomberg reported Monday, citing people familiar with the discussions.

To help governments manage rising energy bills, European Union officials are discussing plans to exclude certain energy-related spending from the bloc's fiscal rules, according to the report.

The proposal would follow the model of the defense carve-out previously approved by the Commission.

Among the strongest advocates of additional fiscal flexibility, Italy has pressed for relief as elevated energy costs add pressure to a country already burdened by high debt levels.

The proposal remains under discussion and key details could still change before any announcement, while the European Commission has not yet made a final decision.

European Commission didn't immediately respond to' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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