EU Nations Seek Budget Flexibility to Boost Defense Spending

Twelve EU countries have requested permission to breach deficit rules to enhance defense spending. The European Commission has proposed raising defense budgets by 1.5% of GDP annually for four years without penalties, given deficits exceed a 3% threshold. Additional requests are anticipated.

BRUSSELS, April 30 (Reuters) - In a bid to increase defense budgets, twelve European Union countries have sought the activation of the "national escape clause" from EU deficit rules, according to the European Commission.

The Commission has introduced a proposal to permit member states to augment their defense spending by 1.5% of their gross domestic product annually for a four-year period without facing disciplinary measures typically applied when deficits surpass 3% of GDP.

Countries including Belgium, Denmark, Estonia, Finland, Germany, Greece, Hungary, Latvia, Poland, Portugal, Slovakia, and Slovenia have made official requests. Valdis Dombrovskis, the EU economy commissioner, emphasized that the Commission will coordinate these efforts to ensure balanced budget policies while transitioning to larger defense budgets.

(With inputs from agencies.)