MNI BRIEF: EC Backs Escape Clause Activation For 16 States

The European Commission will propose the activation of national escape clauses from EU fiscal rules so that 16 EU states can boost defence spending over the next four years, it said on Wednesday.

EU finance ministers will now have to approve the decision, most likely at their July meeting in Brussels. 

The 16 comprise Belgium, Bulgaria, Czechia, Denmark, Germany, Estonia, Greece. Croatia, Latvia, Lithuania, Hungary, Poland, Portugal, Slovenia, Slovakia and Finland. 

A further five to six EU states are thought to be considering whether to apply for the national escape clause, although none of these include any of the big EU economies, such as France, Italy or Spain, which have so far opted out of the scheme. (See MNI: Additional EU Defence-Financing Prospects Bleak)