MNI BRIEF: France Not Seeking Escape Clause For Defence Boost

Despite announcing a faster rise in defence spending, France will still not apply for an escape clause from the EU's fiscal rules, an official told MNI.

"No activation of the clause, we remain committed to getting to a 3% budget deficit in 2029,” the official said.

The national escape clauses offered by the European Commission allow states to exclude defence spending increases of up to 1.5% of GDP from EU rules. So far 16 states have applied and 15 of those have been approved. (See MNI INTERVIEW: Germany Needs Favourable EU Fiscal Treatment)

The source said France would make space for more defence spending by cutting other spending rather than raising taxes. 

"We are determined that there should be no overall increase in the tax burden," the official said.