European Union finance ministers approved requests from 15 EU member states to bypass strict budgetary discipline rules and take on additional debt for defense spending on Tuesday, July 8.
The 15 countries granted exemptions are Belgium, Bulgaria, the Czech Republic, Denmark, Greece, Croatia, Estonia, Latvia, Lithuania, Poland, Portugal, Slovakia, Slovenia, Finland, and Hungary.
Germany also submitted a request to break the bloc’s fiscal rules. However, its application is still pending, as Berlin has yet to submit a long-term budgetary plan to the European Commission for review.
Under EU fiscal rules, member states are required to keep their budget deficits below 3% of gross domestic product (GDP) and debt levels under 60% of GDP. The newly approved exemptions will allow the selected countries to allocate an additional 1.5% of GDP toward defense without facing penalties.
The decision comes as many EU nations face increasing pressure to boost military capabilities as part of their NATO commitment. Despite a common commitment to strengthening defense, many of the EU’s 27 member states have struggled to reconcile growing defense needs with strict EU spending limits.
