Greece is preparing to formally request the exclusion of its defense
Greece is preparing to formally request the exclusion of its defense expenditures from future fiscal calculations under the European Union’s updated budgetary framework. The move, known as invoking the “escape clause,” was confirmed on Tuesday, April 29, by National Economy and Finance Minister Kyriakos Pierrakakis during an interview on state broadcaster ERTNews.
According to the minister, the Ministry of Finance was scheduled to send the request letter later in the day. The exemption is seen as a necessary step to secure fiscal space for covering ongoing and planned defense spending, especially as the country prepares for a significant increase in military-related costs over the coming years.
Spending is projected to rise by approximately 500 million euros between 2025 and 2026, as part of a comprehensive multi-year defense program already outlined by the government. If approved, the exemption would allow this amount to be excluded from the EU’s annual spending cap calculations, giving Greece more flexibility in meeting other budgetary priorities.
Pierrakakis highlighted that the European Union’s fiscal framework has evolved, moving away from the rigid requirement for consistently high primary surpluses and toward a model focused on annual expenditure limits. Member states, including Greece, now agree on a predetermined level
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