EU to Review Defense Spending Flexibility Requests

EU member states wishing to activate the newly introduced escape clause for defense spending must submit applications to the European Commission by the end of April. The Commission will assess these requests and issue recommendations in June, with a final decision set for July at the European Council, CE Report quotes Athens-Macedonian

The escape clause will be effective from 2025 to 2028, providing fiscal flexibility for increased defense spending without breaching the European Stability and Growth Pact’s budget limits. The Commission will later decide whether an extension is necessary.

This move is expected to benefit countries like Greece, which allocate a higher share of GDP to defense due to its geopolitical position. In 2022, Greece’s defense spending reached 2.6% of GDP, surpassing NATO's 2% target and the EU average of 1.3%. The new flexibility also allows for increased investments in defense, including personnel recruitment, training, and salary raises.