However, Warsaw is concerned that few other member states will follow suit, jeopardizing the EU’s goal of mobilizing €650 billion in extra defense investment, Polish Finance Minister Andrzej Domański said in an interview with Reuters on Thursday.
Domański, speaking on the sidelines of the IMF–World Bank spring meetings in Washington, said Poland would decide on the formal application by the end of April.
“We are seriously considering applying for the national escape clause,” he told Reuters. So far, only Portugal has indicated it will make the same request.
The European Commission’s proposal, unveiled in March by President Ursula von der Leyen, would let each EU country borrow at market rates—backed by the EU budget—to boost annual defense outlays by up to 1.5 percentage points of GDP for four years, without triggering the usual excessive-deficit procedure that applies above a 3% deficit.
But Domański warned that countries with high public debt and distant from Russia’s borders, such as Italy, Spain and France, have expressed skepticism about taking on more debt for military purposes.
“If those countries won’t apply, then it probably won’t happen,” he said of meeting the €650 billion target.
In addition to national measures, the Commission proposed a joint EU borrowing initiative—dubbed SAFE—to raise €150 billion for collective defense projects. Poland, which holds the EU presidency, intends to finalize SAFE in May but regards it as insufficient on its own.
“SAFE by itself? I don’t think it’s enough,” Domański said.
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Source: Reuters, Business Insider