Germany requests EU budget exemption to boost defence spending

Tue, 29 Apr 2025

Germany requests EU budget exemption to boost defence spending

WAM
29 Apr 2025, 01:40 GMT+10

Germany requests EU budget exemption to boost defence spending

BRUSSELS, 29th April, 2025 (WAM) -- Germany has asked the European Commission to exempt Berlin from borrowing limits to boost defence expenditure and counter Russia's growing military threat, according to Euractiv.

The letter, sent to Brussels by Germany's outgoing finance minister, Jrg Kukies, requests the activation of the EU's "national escape clause" that would allow Berlin to increase defence spending by 1.5% of annual GDP for four years without contravening the bloc's fiscal rules.

The EU's current rules - codified in its 'Stability and Growth Pact' - prohibit member states from running budget deficits greater than 3% of annual GDP.

"We see the Commission's proposal for a coordinated activation of the national escape clause of the Stability and Growth Pact as an important complementary measure to enable increased national defence spending while safeguarding fiscal sustainability," reads the letter, which was first reported by Reuters.

A Commission spokesperson confirmed on Monday the receipt of the letter and that Germany is the only EU country to have applied for the scheme.

However, the spokesperson added it is "likely" that the number of applications would "increase substantially over the coming days."

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