Germany Seeks EU Exemption for Boosting Defence Budget

Germany is seeking an exemption from EU borrowing limits to increase its defence budget. This move, revealed by Finance Minister Joerg Kukies, aligns with similar requests from Portugal and Poland. The European Commission's proposal would allow increased defence spending without triggering deficit-based disciplinary measures.

Germany has formally requested an exemption from European Union borrowing limits, aiming to ramp up its defence spending in the forthcoming years. This intention was communicated through a letter sent by German Finance Minister Joerg Kukies, as per reports obtained by Reuters on Monday.

Kukies, in a Friday interview with Reuters, confirmed Germany's likely pursuit of this exemption. These plans echo intentions previously expressed by Portugal and Poland, revealing a regional trend towards bolstering military expenditures.

The European Commission has devised a plan allowing member states to increase defence budgets by up to 1.5% of their GDP annually over a span of four years. This would permit such fiscal expansions without imposing the usual disciplinary measures that apply when deficits exceed 3% of GDP.

(With inputs from agencies.)