As of Friday, 13 EU member states have formally requested an exemption from budgetary rules regarding defense spending, according to the European Commission. Balazs Ujvari, an EC spokesperson, indicated that countries currently facing excessive deficit procedures will gain more flexibility.
Under existing fiscal regulations, member state deficits cannot exceed 3% of GDP, and debt levels are capped at 60%. The defense expenditures of countries granted the exemption will not be subject to these constraints.
The following countries have submitted requests for the defense exemption clause: Belgium, Denmark, Estonia, Finland, Greece, Germany, Lithuania, Latvia, Poland, Portugal, Slovakia, Slovenia, and Hungary. This total is still fewer than the figures mentioned by Finance Minister Andrzej Domański earlier in the week. The EC only acknowledges formally submitted requests, while the EU Council, led by Poland, also considers verbal commitments. Domański indicated that Bulgaria, the Czech Republic, and Croatia might also join the list.
Ujvari noted that the number of requests reported by the EC is expected to rise in the coming days.
The EC plans to evaluate the requests in May, with a decision expected by June 4. While Ujvari refrained from predicting whether all requesting countries would be granted exemptions, he emphasized the likelihood of approval, stating that there are compelling reasons for these requests to be considered.
Among those seeking exemptions are nations under excessive deficit procedures, including Poland, Belgium, Slovakia, and Hungary.
Ujvari explained, “If a country under excessive deficit procedures seeks to activate the national exit clause, and this request is positively assessed by the EC and approved by the EU Council, it will influence the evaluation process, and the flexibility gained through the clause will be factored in.”
Suspending budgetary constraints on defense spending is a key component of the EU’s rearmament strategy proposed by EC President Ursula von der Leyen in February, which has received backing from member state leaders.
This exception aims to permit member states to allocate an additional 1.5% of their GDP to defense from 2025 to 2029, using 2021 as the baseline year.
The EC projects that the European rearmament initiative could mobilize an extra 800 billion euros throughout the EU. This includes 150 billion euros from the SAFE loan program, while the remaining 650 billion euros is anticipated to be generated by easing spending rules in the defense sector.
Notably, major EU economies such as France, Italy, Spain, and the Netherlands have yet to submit exemption requests. When questioned about the feasibility of raising the 650 billion euros for defense in national budgets without their involvement, the EC spokesperson noted that not all countries require an exemption, as some have the fiscal capacity to increase military spending without breaching excessive deficit procedures. (02.05.2025)
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