Ursula von der Leyen announced that the EU may suspend its public spending rules to boost defense investments amidst doubts over US security commitment. Despite being bound by rules limiting public deficit and debt levels, these can be waived in crises, as seen during the pandemic. French leaders like Bayrou and Macron have called for this suspension due to current threats, with Macron labeling the fiscal rules as outdated. France anticipates a public deficit of 6% in 2024, aiming to reduce it to 5.4% by 2025.
But the EU can suspend the rules in exceptional circumstances and crises, as it did during the coronavirus pandemic when states propped up their embattled economies.
Von der Leyen said earlier this month at the annual Munich Security Conference that she believes Europe was in a period of crisis that justifies suspending the deficit rule for defence spending.
French President Emmanuel Macron earlier this month criticised the EU's fiscal rules as 'obsolete' in an interview with the Financial Times.
Bayrou told Le Figaro: "I share the opinion of those who say that 'in these dangerous circumstances military spending should be excluded from European deficit rules'".
#eu-defense-spending #public-spending-rules #ursula-von-der-leyen #french-politics #european-security
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