Published by Global Banking & Finance Review®
Posted on April 30, 2025
1 min readLast updated: January 24, 2026
Twelve EU nations request activation of the escape clause to boost defence spending, allowing a 1.5% GDP increase annually without penalties.
BRUSSELS (Reuters) -Twelve European Union countries have requested activation of the "national escape clause" from EU deficit rules in order to boost their defence spending, the European Commission said on Wednesday.
The Commission, which is the EU's executive body, has proposed allowing member states to raise defence spending by 1.5% of gross domestic product each year for four years without any disciplinary steps that would normally kick in once a deficit is more than 3% of GDP.
In a statement, the Commission said Belgium, Denmark, Estonia, Finland, Germany, Greece, Hungary, Latvia, Poland, Portugal, Slovakia and Slovenia have made requests, and that additional requests are expected at a later stage.
A spokesperson for the Polish presidency of the Council of the EU said that while 12 countries have already applied, four more "will do so shortly."
The Commission will now assess the requests.
"The Commission will continue to ensure that this flexibility is coordinated and helps EU countries to transit towards higher defence budgets while preserving sound budget policies," said Valdis Dombrovskis, the bloc's economy commissioner.
(Reporting by Lili Bayer and Andrew Gray; Editing by Leslie Adler and Rod Nickel)
The article discusses twelve EU countries requesting the activation of a national escape clause to increase defence spending.
It allows EU countries to increase defence spending without facing penalties for exceeding deficit limits.
Countries include Belgium, Denmark, Estonia, Finland, Germany, Greece, Hungary, Latvia, Poland, Portugal, Slovakia, and Slovenia.
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