European Union budget rules have come under fire from Italy's Economy Minister Giancarlo Giorgetti, who described the current framework as 'stupid and senseless' in a statement issued on Thursday.

Giorgetti's criticism stems from the EU Commission's proposed flexibility clauses aimed at increasing investment in security.

However, he argues that these rules penalize countries like Italy, which are currently under an EU infringement procedure for their excessive deficits.

The minister emphasized the need to update the budget rules to align with the current crisis and prevent them from appearing impractical.

This call for change comes as Europe faces mounting pressure to boost military spending in response to potential threats and reduce dependence on the United States.

Italy, although set to meet NATO's defense target of 2 percent GDP through accounting adjustments this year, is expected to raise its goal to 5 percent GDP at an upcoming alliance summit.

Giorgetti points out that under the EU Commission's proposed scheme, countries not under the excessive deficit procedure can utilize additional leeway for defense spending without breaching budget rules.

However, those already subject to disciplinary measures due to exceeding the 3 percent GDP deficit threshold are excluded from this flexibility.

Italy is hesitant to invoke the EU flexibility clause as it would hinder its planned deficit reduction to 2.8 percent GDP in 2026 from last year's 3.4 percent.

The government remains committed to exiting the infringement procedure and views accepting increased defense spending as incompatible with its financial goals.

Furthermore, Italy is cautious about any measure that could negatively impact its market reputation, as evidenced by recent upgrades from credit ratings agencies like Moody's and S&P Global.

While Italy prefers the option of using common EU debt to finance higher defense spending, this approach requires the support of other EU members.