Italy seeks EU nod to use fiscal leeway to help families, not just green transition

ROME, Oct 12 (Reuters) - Italy is in talks with the European Commission to use part of the budget leeway provided by the so-called "National Escape Clause" (NEC) to help families cope with surging energy costs, Economy Minister Giancarlo Giorgetti said on Tuesday.

The NEC allows EU countries to temporarily hike deficits to ​lift defence spending and to pay for investment that helps the transition from fossil fuels to green energy.

• Addressing lawmakers on Italy's multi-year budget plan, Giorgetti called for greater flexibility on the European Union's budget rules

• "We believe that the NEC should, especially at this early stage, provide selective and temporary support to families and businesses facing difficulties due to rising energy prices and inflation," Giorgetti said

• "Therefore, a sort of discussion is currently underway and will continue until EU authorities adopt the NEC for Italy, to determine which measures to include," he added

• Giorgetti reiterated that the government was working to ensure Italy's exit from the EU's ongoing infringement procedure for excessive deficit "next spring"

• The government will unveil its 2027 budget this month, the last under Prime Minister Giorgia Meloni before a national election due next year

(Reporting by Giuseppe Fonte, Editing by Xevi Fontdegloria)