Greece secures an additional €500 million of fiscal space for 2026 and beyond, following yesterday’s decision by Ecofin to activate the escape clause, creating new conditions and possibilities for both national defence and civilian support.
In practical terms, the escape clause opens up new fiscal horizons for the country without compromising economic stability. It allows member states to increase their defence spending without it counting towards the budgetary targets they have agreed with Brussels. In practice, this means that:
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- – Greece can invest more in armaments and military infrastructure
- – At the same time, it maintains fiscal space for other policies
- – is not at risk of sanctions or fines from the EU for violating fiscal rules
The “diplomacy of numbers”
As Minister of National Economy and Finance, Kyriakos Pierrakakis said from Brussels, “today’s ECOFIN decision to adopt the escape clause for defence spending is a strategic victory for Greece and a moment of institutional maturity for Europe.”
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