The clause allows EU member states to temporarily exceed strict fiscal limits under exceptional circumstances, including the cap on budget deficits at 3 percent of GDP and public debt at 60 percent.
Poland is currently subject to the EU’s excessive deficit procedure, triggered last year to ensure budgetary discipline.
EU law applies across all 27 member states, but sometimes individual countries negotiate opt-outs from particular regulations or treaties, allowing them to stay out of certain policy areas.
According to the Polish finance ministry, the escape clause permits deviation from the recommended spending path approved by the EU's Ecofin council of economic and finance ministers to accommodate increased defence outlays.
However, this flexibility is limited to no more than 1.5 percent of GDP above levels before Russia's war in Ukraine.
Estimates from the ministry show that Poland’s defence spending — as defined by the EU’s Classification of the Functions of Government (COFOG) — will exceed 2021 levels by 1.1 percent of GDP in 2024 and 1.3 percent in 2025.
The ministry also noted that elevated defence spending will likely continue in the years ahead, far above pre-2022 levels. It emphasized that this request aligns with recent European Commission guidance.
On March 19, the Commission encouraged EU member states to make coordinated use of the national escape clause in response to Russia’s ongoing aggression, and a deteriorating security environment.
The aim is to allow for a long-term increase in defence investment, while maintaining medium-term fiscal stability.
Although the Commission set an informal deadline for submitting requests at end of April, the ministry said this was not a hard cutoff.
Requests submitted by then — including Poland’s — will be assessed by the Commission by June 4, with Ecofin scheduled to adopt formal recommendations on July 8.
The ministry added that even while using the clause, countries remain subject to the EU’s broader economic governance framework.
The move follows a broader push by European leaders to ramp up defence spending.
In early March, Commission President Ursula von der Leyen unveiled a five-point European defence plan aimed at mobilising up to EUR 800 billion in spending. It includes loosening EU fiscal rules and launching a new funding tool called SAFE, with up to EUR 150 billion available in loans.
The Commission has proposed that all member states be allowed to increase defence expenditure by an average of 1.5 percent of GDP per year for four years, which would collectively amount to around EUR 650 billion.
Poland was among seven countries placed under the excessive deficit procedure by the Council of the EU in July last year.
Those countries now have between four and seven years to address their budgetary imbalances.
(rt/gs)
Source: IAR, PAP