Brussels – Finance Minister Klemen Boštjančič has assured that Slovenia will not irresponsibly accumulate debt to boost its defense budget. He noted that it remains uncertain whether the nation will take advantage of the loans available to member states for purchasing military equipment through a new EU financial instrument, which totals up to 150 billion euros.
Speaking on the sidelines of the EU finance ministers’ meeting, Boštjančič stated, “Slovenia has not faced, nor will it face in the coming years, challenges in securing additional funds.” He highlighted that Slovenia currently ranks among the top countries in Europe regarding its financial metrics.
“From this standpoint, we have the capacity to assume more debt. However, that does not imply we will recklessly incur debt merely to meet a specific target,” he emphasized.
Slovenia has applied for permission to deviate from European budget regulations to invest in defense, by the informal deadline of April 30. The minister clarified that this application was made “as a precaution.”
It is still uncertain whether Slovenia will opt for loans for defense financing under the new EU financial mechanism designed for the collective acquisition of military supplies.
Slovenia endorses the proposal introduced by the European Commission in March, although Boštjančič pointed out that such loans will contribute to national debt that must be repaid.
This financial mechanism proposal, currently under negotiation among member states, was introduced in response to the evolving security situation in Europe and globally. Many European nations are also increasing their defense budgets. The Slovenian government recently announced plans to elevate defense spending to two percent of GDP this year, aiming to increase it to three percent by 2030. (May 13)
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