On Wednesday, 30 April, sixteen European Union member states announced their intention to use the ‘national escape clause’ – a special budget flexibility rule- to ramp up defence spending prompted by Russia’s ongoing war in Ukraine and the heightened security threat across Europe, these countries are seeking permission to invest more in their military capabilities without immediately breaching the EU’s strict fiscal guidelines.
On the same day, the European Commission announced that it had already received formal requests from twelve nations, with the other four expected to follow in the coming days, signalling a significant push to bolster the continent’s defence readiness in the face of exceptional circumstances.
The security landscape in Europe has fundamentally shifted since Russia’s full-scale invasion of Ukraine. Recognising the urgent need to strengthen their collective defence, EU leaders agreed in March 2025 that member states must build up their military capabilities. However, this presents a challenge. Most EU countries operate under the Stability and Growth Pact, a set of rules to ensure sound public finances by limiting government deficits and debt. Rapidly increasing defence budgets can clash with these rules, especially for countries already managing tight budgets.
To address this, the EU’s recently reformed economic rulebook includes a specific tool: the national escape clause. This provision permits a member state to temporarily diverge from its established budget targets if exceptional circumstances beyond its control significantly affect its public finances. The European Commission and the Council have determined that the current security situation and the need for defence investment constitute exceptional circumstances. As a result, countries that invoke the national escape clause for defence will be permitted to deviate from budgetary rules by up to 1.5 per cent of their GDP per year for a maximum of four years.
What countries are triggering it?
So far, Belgium, Bulgaria, the Czech Republic, Denmark, Germany, Estonia, Greece, Croatia, Latvia, Lithuania, Hungary, Poland, Portugal, Slovenia, Slovakia, and Finland have signalled they will use the clause. Notably, this group includes many Eastern European nations on the front line of the security challenge, as well as several smaller member states. Among the EU’s largest economies, only Germany is currently planning to activate it.
Countries like France and Italy, which face greater budget pressures, have not joined the request at this stage. Italian Finance Minister Giancarlo Giorgetti suggested Italy might reach its defence spending targets through accounting adjustments and is waiting for revised NATO spending goals, which are expected in June, before considering options like the escape clause. Similarly, Spanish Economy Minister Carlos Cuerpo stated that Spain is still considering the defence clause. He noted that Spain’s decision may depend on advancements in creating a European fund to counteract U.S. tariffs.
Other countries with healthier public finances, like the Netherlands and Sweden, are increasing defence spending significantly but believe they don’t need this specific budget flexibility. Denmark, despite having sound finances, explicitly joined the request to send a strong political signal of EU unity on rearmament.
Conclusion
The activation of the national escape clause by a large group of EU countries marks a clear commitment to strengthening European defence in response to geopolitical threats. It provides a practical tool for governments to invest more and faster. The following steps will involve formal assessment and approval by the EU institutions in the coming months.
