Germany Seeks EU Borrowing Exemption for Defense Spending Boost

Germany is preparing to formally request an exemption from European Union borrowing limits to increase its defense spending, as confirmed by Finance Minister Joerg Kukies. This move aligns with a European Commission proposal that lets member states boost defense budgets by up to 1.5% of GDP annually for four years without facing deficit-related disciplinary actions. The initiative, also considered by Portugal and Poland, is intended to collectively raise EU defense investment by 650 billion euros to counter potential Russian threats. Within Germany, the government and coalition partners are in active discussions, and the parliament has already approved a significant defense budget increase. Kukies indicated that Germany supports common European financing for joint military projects, provided such measures enhance economic growth and EU security. The Commission had hoped for broad adoption of this plan among the 27 EU member countries.