MNI BRIEF: EC Head Confirms Nat'l Escape Clause Activation

European Commission chief Ursula von der Leyen confirmed Tuesday that national escape clauses from the bloc's fiscal rules would be activated in order to create fiscal space for EU states to boost their defence spending.

Von der Leyen said that if states used the extra room to boost defence spending by around 1.5% of GDP on average across the EU it would generate €650bn of fiscal space over four years.

Von der Leyen also said a new EU instrument would be created, which would mobilise around EUR150bn in EU loans to states for defence investment on priority projects like air defence, artillery systems, drones and cyber warfare investments.