April 30, 2025 (press release) –
Recalling the European Council conclusions on European defence of 6 March 2025, all Member States are committed to the build-up of necessary defence capabilities in the European Union.
The reformed EU economic governance framework allows for Member States to make use of flexibility, where exceptional circumstances outside the control of the Member State have a major impact on the public finances of the Member State concerned, while safeguarding fiscal sustainability over the medium term. As set out by the European Commission in its communication of 19 March, Russia’s war of aggression against Ukraine and its threat to European security constitute such exceptional circumstances and impact public finances through the necessitation of the build-up of defence capabilities.
In this context, the Council has initiated a coordinated request for activation of the national escape clause. So far, Belgium, Bulgaria, Czechia, Denmark, Germany, Estonia, Greece, Croatia, Latvia, Lithuania, Hungary, Poland, Portugal, Slovenia, Slovakia, and Finland have decided to request the activation of the clause. In other cases, already planned build-up of defence capabilities is also proceeding. The above is without prejudice to the specific character of the security and defence policy of certain Member States.
The clause covers a period of four years and a maximum of 1.5 percent of GDP in flexibility. Member States remain committed to the implementation of the revised economic governance framework also throughout the duration of the activation of the clause.
The use of flexibility will facilitate the transition to necessary higher defence spending at national level in Member States while ensuring debt sustainability. This will contribute substantially to bolstering the security of the European Union and the protection of our citizens while reinforcing its overall defence readiness, reducing its strategic dependencies, addressing its critical capability gaps and strengthening the European defence technological and industrial base accordingly across the Union.
This website is the official website of the Council of the EU and the European Council. It is managed by the General Secretariat of the Council, the body of staff responsible for assisting the Council of the EU and the European Council.
* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistribute or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.