The European Commission is poised to act on proposals aimed at relaxing budget rules to enable European Union member states to boost defense spending, according to Executive Vice President Valdis Dombrovskis.
Ahead of a meeting of EU finance ministers in Brussels, Dombrovskis emphasized that the EC plans to work on specific modalities in the coming weeks and is prepared to move swiftly. EC President Ursula von der Leyen further noted that the commission intends to propose exempting defense spending from EU fiscal limits, akin to the borrowing flexibility granted during the COVID-19 pandemic.
Reuters noted that not all European governments favor the initiative. Some argue that existing EU fiscal rules already provide leniency for defense investments.
For instance, Poland, which currently holds the EU presidency, is advocating for a broader interpretation of what classifies as a defense investment. Polish Finance Minister Andrzej Domanski stressed the importance of clear definitions to enable countries to increase their defense expenditures without violating established rules.
This push for increased defense spending comes in the wake of the Trump administration’s pressure on Europe to take greater financial responsibility for its own defense.
Last week, U.S. Defense Secretary Pete Hegseth, a 2025 Wash100 Award winner, underscored the expectation that Europe should bear most of the financial and military burden for Ukraine’s defense. He also urged NATO allies to exceed the alliance’s 2 percent of GDP defense spending target and aim for 5 percent, highlighting recent measures undertaken by Sweden and Poland.