Brussels: Europe and the Arabs
To date, 12 Member States have submitted a written request to the Commission to activate the national exemption clause under the Stability and Growth Pact, as part of the European Rearmament Readiness Plan 2030 package presented in March 2025. These countries are Belgium, Denmark, Estonia, Finland, Germany, Greece, Hungary, Latvia, Poland, Portugal, Slovakia, and Slovenia. Additional requests are expected at a later stage, as several Member States have expressed interest in taking advantage of this clause. According to a statement issued by the European Commission headquarters in Brussels, "The activation of the national withdrawal clause provides Member States with additional budget space to increase defense spending, while adhering to EU fiscal rules, in line with the paper published by the Commission as part of the Europe Rearmament 2030 Readiness Plan.
Russia's war of aggression against Ukraine and its threat to European security constitute exceptional circumstances, placing significant pressure on Member States' public finances given the urgent need to build their defense capabilities. In response, the European Union has put forward an ambitious defense package, offering financial tools to boost investment in the EU's defense sector, including through the national withdrawal clause. The activation of this clause will give Member States the ability to deviate from their approved net spending paths or their corrective path under the excessive deficit procedure. This flexibility is expected to be provided in the event of exceptional circumstances beyond a Member State's control that have a significant impact on its public finances, as is currently the case.
To ensure fiscal sustainability in the medium term, deviations from the recommended net spending path will be limited to a maximum of 1.5% of GDP on defense spending. Additional for each year of activation until 2028.

The Commission will now assess the requests submitted by Member States with a view to making recommendations to the Council to activate the national opt-out clause as part of the European Spring Semester package for the upcoming Spring 2025 semester. The Council will then have one month to decide on the matter.
Valdis Dombrovskis, Commissioner for Economy and Productivity, said: Implementation and Simplification: Today, the EU is taking a decisive step towards strengthening its defense spending and readiness. 12 Member States have already requested the activation of the National Exemption Clause, which will provide significant additional budget space for investment in their defense capabilities and industries. The Commission will continue to ensure the coordination of this flexibility and help EU countries transition to higher defense budgets while maintaining sound budgetary policies. We welcome further requests.
The activation of the National Exemption Clause for Defense Purposes and the Security Action for Europe (SAFE) Loan together form the backbone of the European Rearmament/Readiness 2030 Plan, presented on 19 March. This is an ambitious defense package that provides financial tools for EU Member States to drive investment in defense capabilities. Under the SAFE Loan, the Commission will raise up to €150 billion from capital markets, building on its established single financing approach. The use of the SAFE Loan can be complemented by the activation of the National Exemption Clause, enabling Member States to significantly and rapidly increase their investments in European defense. While Member States, under the exit clause, will benefit National, from additional space for defense spending, the EU's fiscal rules will remain in full force. Any deviations from approved net spending paths, other than those specified, will be monitored in accordance with Regulation (EU) 2024/1263 throughout the implementation period.