MNI BRIEF: EU Fiscal Rules Need More Detail On Defence
MNI (LONDON) - There is a "further discussion to be had" on the details of how the EU's new fiscal regime treats defence spending, a senior EU official said today.
Under the new rules, defence spending is a "relevant factor" when it comes to assessing so-called "special circumstances" which might exempt EU states from the application of punitive steps under the Stability and Growth Pact (see MNI: Feb Summit To Discuss How To Fund EU Defence Boost ). "But that has not been spelled out in sufficient detail," the official said, noting further discussions to come.
Some southern EU states, with more constrained fiscal space, are pushing for a more clear-cut exclusion of defence spending from the assessment of budget deficits. The official pushed back on that idea, saying "defence spending is still spending. It has to be paid back. It is not a ticket to violate budget constraints.