EU eases spending rules to help member states tackle energy shock

The European Union said on Wednesday that it would loosen fiscal and state aid rules to help member states manage an energy shock sparked by the Middle East conflict. The concessions allow state governments to subsidize struggling businesses and ease budget rules, provided the funds encourage a shift away from fossil fuels.

To prevent member states from breaching the bloc's deficit limits, the EU offer extra budget allowing governments to spend around 0.3% of their GDP on energy-related measures without it counting toward the EU's 3% deficit limit.