Any member state wishing to activate the new escape clause for defense spending must submit a request to the European Commission by the end of April.
The Commission will then examine the requests and make recommendations in June, with the Council of the EU taking the final decision in July, after intensive consultations.
The clause – which will apply from 2025 to 2028, after which the EU will assess whether an extension is necessary – will allow member states greater budgetary flexibility to increase defense spending, without violating the new, particularly strict rules of the Stability and Growth Pact.
According to government officials, the implementation of this clause will be a positive development for Greece, as, due to its geopolitical position, the country has historically spent a higher percentage of GDP on defense than other European countries. In 2022, defense spending amounted to 2.6% of GDP, consistently exceeding NATO’s target of spending at least 2% of GDP and the European average being 1.3% of GDP. At the same time, as the flexibility will concern both investments and current defense-related spending, it will allow for the recruitment and training of military personnel (soldiers, officers, cyber defense). According to Commission officials, there is a “window” so that defense spending that may increase includes spending on new salary increases for uniformed personnel.
In more detail, the new escape clause (“White Paper”) is a mechanism that allows member states to increase public spending in critical periods, without violating EU fiscal rules.
The initiative is part of the EU’s broader effort to increase its autonomy in the field of defense and reduce its dependence on third countries.
