MNI BRIEF: Brussels To Ease EU Fiscal Rules To Boost Defence
MNI (LONDON) - European Commission President Ursula von der Leyen will propose the activation of the Escape Clause from the bloc's fiscal rules so member states can increase their defence spending according to their fiscal situations and current levels of defence spending.
In a speech at the Munich Security Conference, von der Leyen said that the escape clause would have to be activated in a "controlled and conditional way" and tailored according to the fiscal and defence spending situation of each member state.
In a recent interview Zsolt Darvas, fiscal expert at the Bruegel think tank, told MNI that national escape clauses from the EU's updated fiscal rules would be the most likely solution adopted in order to boost the bloc's defence spending which is currently at an average of near 2% of GDP. NATO Secretary General Mark Rutte has told EU leaders that they need to increase this to near 3%. (see MNI INTERVIEW: National Escape Clauses Key To EU Defence Boost )