EU Considers Relaxing Fiscal Rules to Boost Defense Spending Amidst Security Concerns

The Polish presidency of the Council aims to reach an agreement by May on the European Commission's proposal to relax fiscal rules, allowing EU countries to increase defense spending without impacting debt and deficit calculations. This initiative addresses the urgent need to strengthen security policy. Economy Commissioner Valdis Dombrovskis stated the proposal would be presented in the coming weeks, emphasizing that bolstering defense is a multi-year endeavor. Poland prioritizes security and seeks an agreement before its presidency concludes in June. The proposal involves utilizing national escape clauses within the new fiscal rules, allowing governments to request activation based on national needs. A fund for collective arms purchasing, similar to the COVID-19 vaccine model, is under consideration, potentially saving up to €40 billion annually. This will be discussed at an informal meeting in Warsaw in April. While some countries support joint debt issuance for European projects, others remain hesitant, leading to a pragmatic approach. Spain advocates for identifying European projects that enhance EU defense capabilities and supports a broader view of economic security beyond defense.