According to European Commission President Ursula von der Leyen, the EU is ready to propose exempting defense from EU limits on government spending. The statement follows pressure from US President Donald Trump, urging Europe to finance its defense independently.
Currently, the United States is calling on European NATO members to double their military spending in preparation for a possible Russian attack, instead of counting on help from Washington. After all, the country has now shifted its focus to threats from Beijing. Many European leaders, however, disagree with this approach.
Ursula von der Leyen, head of the EU's executive body, announced her intention to "activate the escape clause for defense investments." "This will allow member states to substantially increase their defence expenditure. Of course, we will do this in a controlled and conditional way," she said.
Notably, the EU's debt and spending rules were revised in 2024. This move was necessary to protect the value of the euro currency by reducing excessive public borrowing. These rules set an annual spending limit for governments, ensuring a reduction in public debt over four to seven years. However, in exceptional circumstances that could significantly affect public finances, such as the threat of a Russian invasion, the European Commission can make some adjustments by activating a one-year "escape clause" that can be renewed annually.
