Greece Seeks EU Defence Budget Exemption

Greek Minister of Economy and Finance Kyriakos Pierrakakis has formally requested the activation of the national escape clause from the European Council and Commission. The move aims to exclude increased defence spending from Greece’s fiscal targets, as permitted under EU rules and supported by a European Council decision on March 6, 2025, CE Report quotes Athens-Macedonian

Defence expenditure is projected to rise from 2.2% of GDP in 2024 to 2.5% in 2026, driven by the newly approved Long-Term Defence Equipment Programme covering 2025–2036. In 2026 alone, an additional €0.5 billion in military spending is anticipated. The request ensures fiscal rules will remain in force for non-defence spending, with deviations tracked under EU regulation 2024/1263.