Following Germany, Latvia, and Greece, Estonia and Poland have now submitted official requests to activate the national escape clause to exempt defense spending from EU fiscal limits, according to European Commission spokesperson Balázs Ujvári.
“Yesterday we had Germany, Latvia, and Greece, and today I can announce two more countries—Estonia and Poland,” Ujvári stated, highlighting the growing number of EU member states seeking flexibility in fiscal rules due to defense-related expenditures.
Commission Decision Expected in Early July
The European Commission has set April 30 as the final day for member states to submit requests. However, it remains open to accepting late applications, even after midnight on the deadline day.
The evaluation process is as follows:
- May: The Commission will analyze the requests based on its pre-established criteria.
- June 4 (tentative): The conclusions of this analysis will be presented as part of the spring package under the European Semester framework.
- June: The Council will review the data.
- Early July: A final decision is expected.
The escape clause, if granted, would allow a country to exclude certain defense expenditures from its overall fiscal limits under the Stability and Growth Pact.
Ujvári reiterated that this clause may remain active for four years, with the possibility of a one-year extension, and that eligible defense expenditures will be reviewed annually.
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