Ursula von der Leyen, President of the European Commission, has privately proposed activating an emergency clause in the EU's fiscal regulations to permit countries to significantly raise their defense expenditures, as reported by four EU officials.

This suggestion, made during a closed meeting with national leaders on Monday, would allow governments to increase defense budgets without violating EU budgetary limits.

The existing rules permit deviations from spending plans in exceptional situations, such as severe economic downturns or circumstances beyond a government's control.

Von der Leyen confirmed the aim to utilize 'the full range of flexibilities' within the Stability and Growth Pact, which governs fiscal discipline in the EU, to enable significant increases in defense spending.

She stressed that extraordinary times necessitate extraordinary measures.

Although specific details were not fully disclosed, she also indicated the possibility of excluding defense spending from national budget deficits.

This initiative arises amid growing demands from heavily indebted southern EU countries, including Italy and Greece, which have requested a different treatment for defense spending.

Officials pointed out that activating the emergency clause would enable nations to expand their defense budgets without reopening discussions on the national spending agreement reached last year.

The EU's fiscal framework, designed to maintain collective fiscal discipline, is facing pressure due to incidents like the pandemic and the Ukraine conflict, which have led many EU countries to exceed their budget deficit thresholds.

At the same time, the United States has urged EU members to enhance their defense budgets to meet NATO targets, further increasing pressure on European governments to revise their budgets.

The EU's current regulations offer some leeway for countries seeking to strengthen their defense capabilities, allowing for gradual fiscal adjustments and permitting defense spending to reduce the risk of sanctions.

Moreover, certain EU nations, such as Poland, are pushing for a broader interpretation of defense spending, claiming that the current framework is overly restrictive.