Poland's FinMin notes broad support in EU for expanded definition of defence spending

"Ministers agreed that we need to act urgently (on increasing defence spending) while maintaining fiscal discipline, so we explored ways to increase national defence spending within existing EU fiscal rules," Domanski said in Brussels after a meeting of EU finance ministers (ECOFIN Council).

He added that there was broad support among EU finance ministers for the coordinated activation of the so-called national exit clause of the EU's Stability and Growth Pact.

"Secondly, ministers supported a broad definition of defence spending; thirdly, 2021 is emerging as an appropriate time benchmark for recording defence spending, but specification (on this) is still needed," Poland's finance minister reported.

On March 4, the European Commission President Ursula von der Leyen announced a five-point plan for rearming Europe to mobilise up to EUR 800 billion for defence.

The proposal envisages, among other things, a loosening of EU spending rules, including the activation of the national 'exit clause' of the Stability and Growth Pact, which will allow member states to significantly increase defence spending without triggering the excessive deficit procedure.

However, the current definition of defence spending in the EU refers only to the purchase of military equipment, and there is an ongoing discussion among member states to broaden this definition to include, among other things, the costs of building munitions factories or strengthening roads and bridges for military transport.

Furthermore, it is being discussed that 2021 rather than 2022 should be the benchmark for counting increases in defence spending.

The EC has proposed to allow all member states to increase defence spending by an average of 1.5 percent of GDP per year over four years. This would then amount to EUR 650 billion.

jz/ ao/