To date, 12 Member States have submitted a written request to the Commission to activate the national escape clause of the Stability and Growth Pact, as part of the ReArm Europe Plan/Readiness 2030 presented in March 2025. These countries include Belgium, Denmark, Estonia, Finland, Germany, Greece, Hungary, Latvia, Poland, Portugal, Slovakia, and Slovenia. More requests are expected as several Member States have shown interest in utilizing this clause. 

The activation of the national escape clause provides Member States with additional budgetary space to increase defense spending while remaining within EU fiscal rules, in line with the paper published by the Commission as part of the ReArm Europe Plan/Readiness 2030.

Russias war of aggression against Ukraine presents exceptional circumstances, placing significant pressure on Member States public finances due to the urgent need to enhance their defense capabilities.

In response, the EU has proposed an ambitious defense package, offering financial levers to boost investment in the Unions defense sector, including through the national escape clause. Activation of the clause allows these Member States to deviate from their endorsed net expenditure paths or corrective path under the Excessive Deficit Procedure. Such flexibility is foreseen in exceptional circumstances beyond the Member States control, where these have a significant impact on public finances, as is currently the case.

To ensure fiscal sustainability over the medium term, deviation from the recommended net expenditure path will be limited to a maximum of 1.5% of GDP of additional defense expenditure for each year of activation up to 2028.

The Commission will now assess the requests submitted by the Member States with a view to recommending to the Council to activate the national escape clause as part of the upcoming Spring 2025 European Semester Package. The Council will then have one month to decide on the matter. 

Background  

Together, the activation of the national escape clause for defense purposes and the Security Action for Europe (SAFE) loan form the backbone of the ReArm Europe Plan / Readiness 2030, presented on March 19. This is an ambitious defense package providing financial levers to EU Member States to drive a surge in investment in defense capabilities. Under the SAFE loan, the Commission will raise up to €150 billion on the capital markets, drawing on its well-established unified funding approach. The use of the SAFE loan can be complemented by the activation of the national escape clause, enabling Member States to substantially and rapidly scale up their investments in European defense.

While under the national escape clause Member States will benefit from additional space for defense spending, the EU fiscal rules continue to apply in full. Any deviations from the endorsed net expenditure paths, other than those specified, will be monitored according to the Regulation (EU) 2024/1263 for the entire period of activation.