Germany counting on exemption from EU debt rules for defence boost

Berlin (dpa) – German Finance Minister Lars Klingbeil is confident that the European Commission will grant Germany an exemption from European Union debt rules as Berlin looks to ramp up its defence spending.

“There are no concerns whatsoever that this will not be activated,” Klingbeil said on Thursday.

The Commission recently granted an exemption to several countries. Germany was not among them, as it has not yet submitted a medium-term budget plan to the EU executive.

Klingbeil said this would only be possible once the budget has been passed. He intends to present his plans for the 2025 budget, along with key figures for 2026, to the Cabinet on June 24. It will then need to be approved by parliament.

The EU and its member states are seeking to significantly ramp up their defence capabilities in the face of growing tensions with Russia over its war in Ukraine. In March, the Commission announced new plans to boost defence spending with a total of 800 million Euro.

The exemption from European debt targets is intended to enable greater investments in defence, allowing member states to take out new loans for rearmament without risking proceedings for violating EU rules.

Even before taking office, Germany’s governing parties agreed to relax the country’s constitutional limits on government debt for defence spending. (12 June)