On Tuesday 4 February, the European Commission clarified the comments made by its President, Ursula von der Leyen, the previous day, on the use of specific budgetary measures to help Member States spend more on defence, without amending the Stability and Growth Pact as revised in 2024 (see EUROPE 13571/1).
European legislation provides for “different elements to accommodate an increase in defence expenditure”, said Balazs Ujvari, the EU institution’s spokesperson responsible for budgetary policy.
He pointed out that the regulation on the preventive arm of the Pact allows for a more gradual budgetary adjustment when underpinned by a specific set of reforms and investments, including the strengthening of defence capabilities. In their multiannual budget programmes, Member States with deficits of less than 3% of national GDP can opt to extend their public finance consolidation path from 4 to 7 years.
Mr Ujvari also pointed out that the regulation on the corrective arm of the Pact mentions increased investment in defence as one of the factors to be taken into account under the excessive deficit procedure (EDP), which concerns Member States whose excessive deficit is beyond 3% of GDP.
The preparation by the Member States, each year before the end of April, of a report on the implementation of their multiannual budget programme could provide an opportunity to make adjustments in favour of additional investment in the defence sector.
At this stage, Spain, Finland, France, Italy and Romania have opted for a seven-year budget programme (until 2031) instead of four (see EUROPE 13532/11).
The ‘White Paper’ on European defence, which the Commission is due to present in mid-March, should further clarify how the EU’s fiscal rules can support Member States in their military spending. (Original version in French by Mathieu Bion)