Sixteen European Union countries have formally requested the activation of an emergency budget clause that would allow them to increase national defence spending amid growing fears over continued Russian aggression. The request, backed by the Council of the European Union, is aimed at easing financial constraints on governments trying to meet urgent military needs while maintaining medium term fiscal stability.
The request centres on the so-called “escape clause,” a flexibility mechanism embedded within the EU’s economic governance rules. The clause allows member states to exceed usual fiscal limits during exceptional circumstances beyond their control. The Russian dictatorship’s full scale invasion of Ukraine and its ongoing threat to European stability have been cited as such exceptional circumstances.
The European Commission, in a communication issued on 19 March, declared that the war had created conditions requiring a significant increase in defence spending. Under the escape clause, member states may use up to 1.5 per cent of GDP in additional fiscal room over a four year period.
Countries seeking to activate the clause include Belgium, Bulgaria, Czech Republic, Denmark, Germany, Estonia, Greece, Croatia, Latvia, Lithuania, Hungary, Poland, Portugal, Slovenia, Slovakia and Finland.
This move follows a March 6 decision by the European Council affirming a commitment by all EU member states to build up defence capacity in response to the Russian threat. While some countries have already increased their defence investments, others see the clause as essential for accelerating military readiness.
This budget flexibility is expected to support ongoing national projects, enable faster procurement, and strengthen the EU’s long term security framework. It also aims to enhance the European defence technological and industrial base, reduce dependence on external suppliers, and close critical capability gaps.
The escape clause does not override national defence policies that remain neutral or limited by constitutional constraints. However, it provides a unifying mechanism for coordinated defence investment across the bloc.
Earlier, Brussels proposed an €800 billion (£685 billion) “ReArm Europe” plan aimed at reinforcing EU defence capacity. The package includes €650 billion (£556 billion) in military spending and €150 billion (£128 billion) in loans for joint procurement initiatives. The plan is also intended to support Ukraine as it continues to resist the brutal military campaign launched by the Russian dictatorship.
