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The EU must increase defense spending, so I will propose an escape clause in the stability pact; this will allow member states to significantly increase investment in defense, declared European Commission President Ursula von der Leyen on Friday.
“Many people in security circles in Europe were confused, and some were even concerned by comments made earlier this week by senior US officials. But we must be honest here, and we must avoid outrage and shouting. If we listen to the essence of these comments, we will not only understand where they are coming from, but we will agree that there are certain points on which we can agree,” said the EC president at the Munich Security Conference.
On Wednesday, Pentagon chief Pete Hegseth supported US President Donald Trump’s idea in Brussels to raise the defense spending threshold in NATO to 5%.
“Both the United States and the European Union want to end the bloodshed,” she said. In her view, to achieve lasting peace, “Ukraine should receive solid security guarantees.”
“I believe that when it comes to European security, Europe must do more,” emphasized von der Leyen.
“Europe must contribute more to the discussion, and to achieve this, we need to seek growth in European defense spending. Therefore, I can announce that I will propose the activation of an escape clause for defense investments. This will allow member states to significantly increase defense spending,” stated the EC president.
The clause allows for the relaxation of rules requiring member states to maintain a budget deficit below 3% of GDP. It was activated, among other things, during the Covid-19 pandemic.
Such an exemption will allow states to spend on defense without having to make budget cuts in other areas to meet the requirements of the stability and growth pact. Its component is the excessive deficit procedure. Last year, Poland was among those subjected to this procedure, which also sought to exclude defense spending from deficit calculations.
As von der Leyen pointed out, using the escape clause will have to happen in a controlled and conditional manner. “I will also propose a broader package of tools tailored to each member state, regarding the current level of defense spending and fiscal situation,” she announced.
“We also need a European approach to setting our investment priorities. This will allow investments in much-needed defense projects,” she said.
The EC president assessed that the fall of Ukraine would weaken both the European Union and the USA, multiplying their challenges in the Indo-Pacific and threatening the common interests of both sides. “To prevent this, the European Union is ready to work with Donald Trump to ensure lasting peace in Ukraine,” she declared.
Von der Leyen emphasized that it is important for this peace “to be negotiated from a position of strength,” which, as she noted, the United States has already clearly committed to facilitating. However, the politician admitted that Vladimir Putin must also show that he wants to end the war and has abandoned his ambitions to destroy Ukraine.
The EC president assessed that the EU must change its mindset to a crisis mindset. “When Europe is forced to act, it is capable of moving mountains. We have demonstrated this by obtaining life-saving vaccines, managing the energy crisis, and providing unprecedented support to Ukraine,” she recalled.
As she noted, Europe has made a historic breakthrough, providing Ukraine with a record 134 billion euros of military and financial support, becoming independent from Russian gas, and imposing sanctions on Russia that have severely hit the Russian economy. (14.02.2025)