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EU gives Germany free pass over defence spending

Germany's 3.1% public deficit is exempted from EU rules as increased defence spending is fully justified, following a temporary allowance of up to 1.5% of national output for defence.

  • On Tuesday, the European Commission said Germany will escape EU punishment because the excess deficit is fully explained by increased defence spending.
  • Brussels had earlier allowed states to spend up to 1.5 percent of national output on defence for four years, and Germany was among 16 states seeking exemptions as German Chancellor Friedrich Merz relaxed debt rules.
  • The commission has opened procedures against Austria, Belgium, France, Hungary, Italy, Malta, Poland, Romania and Slovakia, and Brussels will propose a procedure for Finland as its excess is only partly due to defence spending.
  • France is publicly complying with Brussels but faces pressure to pass a spending bill by the end of the year to rein in its deficit amid political deadlock, the European Commission said.
  • In the wider context, the rules and Berlin's pivot mean Germany's change of course reflects security concerns linked to Russia, China and the United States, and the commission said it will not punish Berlin this year.
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Germany will escape European Union sanctions for violating the community's budgetary rules, the European Commission announced on Tuesday.

·Estonia
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The Indiana Gazette Online broke the news in Indiana, United States on Tuesday, November 25, 2025.
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