Navigating the Evolution of EU Fiscal Rules: A Possible Special Status for Defence Spending?
Amid a paradigm shift in EU economic governance, a draft compromise seen by Euractiv reveals that, under the new Economic Governance Review (EGR), defence spending might be granted special status within European Union (EU) fiscal rules (Pugnet &Allenbach-Ammann, 2023). According to Euractiv, this document, tabled by the Spanish presidency of the EU Council on 3 November 2023, seeks to stimulate member state investment in defence. It is also part of a grand effort to overhaul current EU debt and deficit reduction rules, which were suspended for four years in order to allow increased spending and will be returning in full force in 2024 (Leali & Smith-Meyer, 2023).