EU deficit procedure: Austria claims exemption for defense
Brussels (APA) – Austria’s Finance Minister Markus Marterbauer (SPÖ) will invoke the so-called “national escape clause” at the EU level “to preserve budgetary leeway.” Marterbauer announced this on Thursday in Brussels. The escape clause allows deviation from the budget without sanctions if defense spending is increased. Marterbauer emphasized the measure as purely precautionary, “we have no concern that the budget timetable cannot be adhered to,” he said.
The deficit procedure against Austria will not be affected by the use of the escape clause. With its current budget deficit of over four percent, Austria is clearly above the permitted limit of three percent of economic output. The plan is for Austria to consolidate its budget and exit the deficit procedure by the end of 2028. That remains the goal, the finance minister emphasized in a press briefing.
Uncertain times
In uncertain times, however, it is important to secure leeway. Austria meets the requirements for the escape clause: in 2025, the increase in defense spending will amount to 0.2 percentage points of gross domestic product. “We can influence the expenditure side well, but not the revenue side,” Marterbauer stated. Even if the available economic figures are “clearly better” than originally assumed, one must be cautious given the current overall economic conditions. The use of the clause is not based on the higher federal states’ debt, the finance minister said in response to a corresponding question. “The federal states’ debt is only one part of the uncertainty,” said Marterbauer.
Twelve EU members already made use of the escape clause in April. Germany, Belgium, Denmark, Estonia, Finland, Greece, Hungary, Latvia, Poland, Portugal, Slovakia and Slovenia were mentioned. Even then, it was said that further applications for the use of the “national escape clause” were expected, according to Economic Commissioner Valdis Dombrovskis. In April, they had not been that far yet, Marterbauer said: “We had just taken office then.” The increased defense spending only later became “representable in the budget.” (12/11/2025)
