Asger Risom
Only 14 member countries have requested defense spending exemptions, casting doubt on €800 billion target
Europe’s ambitions to rebuild its military capabilities are clashing with fiscal caution. As geopolitical tensions grow, concerns are rising that the EU’s flagship defense initiative may fall short of its financial goals.
Limited Uptake of Budget Exemption Clause
Out of the 27 EU member states, only 14 have officially asked the European Commission to exempt increased defense spending from their national deficit calculations. The clause, introduced as part of the EU’s ReArm Europe strategy, allows member countries to raise military budgets by up to 1.5% of GDP over four years without breaching strict fiscal rules, as reported by Digi24.
The plan, announced in March, aims to mobilize up to €800 billion by 2030 to bolster the EU’s deterrence capabilities, especially in response to the ongoing threat from Russia. Yet the slow uptake signals hesitation among member states.
Countries that have submitted requests include Belgium, Germany, Poland, Finland, Greece, Hungary, and several Baltic and Eastern European nations. Croatia and the Czech Republic have expressed intentions to apply soon, while others, such as Spain, are reportedly considering it.
Fiscal Discipline vs. Security Priorities
The lack of broader participation is worrying EU officials. According to Commission spokesperson Balazs Ujvari, while more states may still apply, the current number raises doubts about reaching the plan’s financial scale.
Notably, four of the 14 applicants—Belgium, Hungary, Poland, and Slovakia—are already under an Excessive Deficit Procedure (EDP), complicating their budgetary maneuvers. France, Italy, Romania, and Malta are also under EDP status but have yet to apply for the exemption.
The European Commission has stated that any defense-related flexibility will be “taken into account” in future fiscal evaluations, though it remains unclear how this will be balanced against deficit enforcement.
Strategic Momentum Faces Bureaucratic Drag
As military threats intensify, the EU’s internal balancing act between economic prudence and defense urgency continues to challenge unity. Without broader commitment, ReArm Europe risks becoming more ambition than action.