Green Light from Ecofin to activate the national escape clause for Greece

Today enclosed (8.7.25) to activate the national escape clause for the defensive costs For Greece and for 14 other Member States the EU Finance Ministers Council (Ecofin).

The activation of the National EU Stability and Development Pact (approved today by Ecofin) will allow the 15 member states that have submitted the request to divergent from the course of their national budget by up to 1.5% of national GDP per year, in the period of 2025-2028, to be divergent from the course of their national budget. Nationally spending, while ensuring debt sustainability.

According to the Council announcement, the Member States are Belgium, Bulgaria, Croatia, the Czech Republic, Denmark, Estonia, Finland, Greece, Hungary, Latvia, Lithuania, Poland, Portugal, Portugal. In practice, the activation of the escape clause, which covers a four -year period, means that the Commission and the Council may decide not to open a new excessive deficit procedure for these 15 Member States, even if they exceed the maximum course of net costs, provided that this exceeding is due. For all other expenses, Member States remain bound by the budgetary rules and must remain committed to the implementation of the revised framework for economic governance regardless of activation of the clause.

All Member States are committed to developing the necessary defense potential in the EU, as noted in the European Defense Council conclusions on March 6, 2025. while ensuring fiscal viability in the medium term. Russia’s aggressive war against Ukraine and its threat to European security are a “excellent occasion”. In this context, the 15 Member States have decided to request the activation of the national escape clause.

Finally, it should be noted that Germany’s request can be evaluated as soon as it has finalized its medium-term budgetary-democratic plan. The Council declares “ready to act on possible requests for the activation of the national escape clausal clause from additional Member States”.



Macro-economy

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