Portugal asks EU to activate fiscal escape clause for defence spending

23/4/2025 16:54

Portugal will ask the European Commission to activate the so-called fiscal escape clause to allow for higher defence spending worth up to 1.5% of gross domestic product, the finance ministry said on Wednesday, one of the first member states to do so.



European countries are under pressure from U.S. President Donald Trump, who is pushing NATO allies to lift military spending to as high as 5% and is reluctant to continue funding Kyiv in the war in Ukraine.



The European Commission has proposed allowing member states to raise defence spending by 1.5% of GDP each year for four years, without any disciplinary steps that normally kick in once a government deficit climbs above 3% of GDP.



The move is part of its plans to mobilize close to 800 billion euros to strengthen Europe's defence industry and increase military capabilities.



Portugal's centre-right caretaker government has consulted the main opposition Socialist Party before taking the decision to activate the clause, the finance ministry said in a statement.