The European Commission is maintaining its projection that EU member states could invest up to €650 billion in defence over the next four years, despite fewer than half of the bloc’s governments formally requesting the fiscal leeway needed to ramp up spending.
The estimate, initially presented in March as part of the Commission’s “Readiness 2030” defence strategy, was designed to support the temporary activation of the “national escape clause” in the EU’s Stability and Growth Pact. This mechanism allows member states to exceed the usual 3% of GDP deficit threshold without penalty, provided the extra spending is directed toward defence in light of the current geopolitical climate.
By Friday, only 13 out of 27 EU member states had submitted formal requests to use the clause. These include Belgium, Denmark, Estonia, Finland, Germany, Greece, Hungary, Latvia, Lithuania, Poland, Portugal, Slovakia, and Slovenia. The Commission had asked for coordinated submissions by April 30, but clarified that this was a “soft deadline,” and late applications would still be considered ahead of its Spring Semester Package report due June 4.
Speaking to reporters, Commission spokesperson Balazs Ujvari acknowledged that the €650 billion figure was a “ballpark estimate” based on assumptions made before knowing how many member states would participate. “We wanted to give an order of magnitude of the fiscal space that could be made available,” he explained, adding that a more accurate estimate will only be possible next year after 2025 defence expenditure data is collected.
To gain approval, member states must demonstrate exceptional circumstances justifying the deviation, show that the deviation does not threaten medium-term fiscal sustainability, and prove that their spending is linked directly to defence.
Some of the requesting states, including Belgium, Hungary, Poland, and Slovakia, are already under Excessive Deficit Procedures due to deficits exceeding the 3% cap. In such cases, the Commission said it would factor in the flexibility provided by the escape clause during its assessments.
Separately, the Commission is also preparing to launch the SAFE programme, offering up to €150 billion in loans for defence spending through jointly procured, EU-made weapons systems. These funds, unlike national budgets, will be centrally raised and distributed, aiming to foster defence industry cooperation across the bloc.
The SAFE initiative is still under review by the Council, with an application window expected to open six months after its formal adoption.