The European Commission has confirmed that EU member states can access additional fiscal flexibility to increase defence and energy security spending, under provisions embedded in the 2026 European Semester Spring Package published this week. Under the National Escape Clause for defence, member states are permitted to spend up to an additional 1.5% of GDP on defence without breaching EU fiscal rules. In a significant development, the Commission has now expanded the scope of that clause to include energy resilience measures, reflecting the growing recognition that energy security and defence capability are increasingly intertwined priorities. Member states can now apply for…
