Greece Seeks EU Exemption for 2026 Defense Spending

Greece is seeking an exemption from European Union budget rules for its 2026 defense spending by activating the so-called fiscal escape clause, aiming to spend an additional 500 million euros—less than 0.3% of its GDP—toward a broader plan to invest 25 billion euros in military modernization by 2036. This effort is part of a larger push by both Greece and Germany to boost defense budgets as the EU looks to reduce reliance on U.S. military support. The European Commission has proposed allowing member states to increase defense spending by up to 1.5% of GDP annually for four years without triggering typical deficit-related penalties. Greece already spends about 3% of its GDP on defense, nearly double the EU average, reflecting ongoing security concerns, especially regarding its historic rivalry with Turkey. The country’s robust spending comes after recovering from a severe debt crisis and is supported by its recent strong economic performance. These moves reflect shifting European priorities amid heightened geopolitical tensions and calls for increased collective defense investment.