Greece seeks EU exemption for 2026 defence spending

Greece will request an exemption from the European Union’s budget rules to allow for increased defence spending in 2026, Finance Minister Kyriakos Pierrakakis announced on Tuesday.

The request, which will be submitted later in the day, seeks to exempt 500 million euros (around $569.6 million) from the EU’s fiscal rules, accounting for less than 0.3 per cent of Greece’s GDP.

This move comes as part of Greece’s broader defence strategy, with the European Commission proposing a temporary allowance for EU countries to raise defence spending by up to 1.5 per cent of GDP annually for four years without triggering penalties for excessive deficits.

Greece already allocates 3 per cent of its GDP to defence, nearly double the EU average, and aims to invest 25 billion euros by 2036 to modernise its military forces in response to regional security concerns, particularly with neighbouring Turkey.

The country, which emerged from a severe debt crisis in 2018, has seen its economy recover, posting a primary budget surplus of 4.8 per cent last year, surpassing expectations.

Attribution: Reuters

Subediting: Y.Yasser