In a rapidly changing geopolitical landscape, the European Union is considering relaxing its strict fiscal rules to allow member states more room to invest in defence. The idea, proposed by European Commission President Ursula von der Leyen during an informal EU leaders’ retreat on 3 February 2025, suggests temporarily suspending some fiscal regulations—similar to what happened during the COVID-19 pandemic—to help countries increase military spending without triggering penalties for excessive deficits.

With the ongoing war in Ukraine and growing pressure from the United States for European nations to spend more on defence, the EU is looking at ways to strengthen its military capabilities. According to von der Leyen, extraordinary times, like these, may require extraordinary measures. While some member states, including Germany, remain cautious about jointly financing defence spending, others, like Poland and the Baltic States, are pushing for more collective action.

As discussions continue, the urgency is clear, with 23 of the 27 EU member states also part of NATO and committed to spending at least 2% of their GDP on defence. With looming elections in Germany and mounting financial pressures, how the EU navigates these fiscal changes will have long-term implications for both defence and economic stability.

Do you think the European Union should increase military spending?