The China Mail - EU gives Germany free pass over defence spending

USD -
AED 3.672498
AFN 65.498886
ALL 81.893517
AMD 377.707367
ANG 1.79008
AOA 917.000342
ARS 1435.969698
AUD 1.427104
AWG 1.8
AZN 1.705638
BAM 1.658906
BBD 2.014216
BDT 122.30167
BGN 1.67937
BHD 0.37698
BIF 2963.603824
BMD 1
BND 1.273484
BOB 6.910269
BRL 5.329095
BSD 1.000025
BTN 90.583306
BWP 13.239523
BYN 2.873016
BYR 19600
BZD 2.011247
CAD 1.36301
CDF 2229.999508
CHF 0.775875
CLF 0.02185
CLP 862.740298
CNY 6.93805
CNH 6.931585
COP 3682.47
CRC 495.76963
CUC 1
CUP 26.5
CVE 93.526553
CZK 20.48585
DJF 178.079171
DKK 6.31818
DOP 63.114413
DZD 129.930442
EGP 46.862204
ERN 15
ETB 155.46494
EUR 0.846098
FJD 2.209498
FKP 0.738005
GBP 0.73479
GEL 2.695023
GGP 0.738005
GHS 10.990102
GIP 0.738005
GMD 72.999713
GNF 8778.001137
GTQ 7.670255
GYD 209.225001
HKD 7.813098
HNL 26.416279
HRK 6.373201
HTG 131.004182
HUF 319.682503
IDR 16850.9
ILS 3.11506
IMP 0.738005
INR 90.50335
IQD 1310.041816
IRR 42125.000158
ISK 122.990208
JEP 0.738005
JMD 156.517978
JOD 0.708987
JPY 156.908974
KES 129.004623
KGS 87.449685
KHR 4035.7261
KMF 419.000276
KPW 900.002243
KRW 1463.459786
KWD 0.30717
KYD 0.833355
KZT 494.785725
LAK 21489.944613
LBP 89557.410282
LKR 309.387392
LRD 188.003087
LSL 16.133574
LTL 2.95274
LVL 0.60489
LYD 6.332646
MAD 9.180641
MDL 17.050476
MGA 4439.468349
MKD 52.15526
MMK 2100.00747
MNT 3580.70414
MOP 8.047618
MRU 39.542143
MUR 46.060545
MVR 15.449836
MWK 1734.055998
MXN 17.31615
MYR 3.947494
MZN 63.750214
NAD 16.133574
NGN 1367.070015
NIO 36.803155
NOK 9.671904
NPR 144.932675
NZD 1.662855
OMR 0.384509
PAB 1.000025
PEN 3.364787
PGK 4.288489
PHP 58.438976
PKR 279.633919
PLN 3.56635
PYG 6607.462446
QAR 3.645108
RON 4.308602
RSD 99.323033
RUB 77.354646
RWF 1459.579124
SAR 3.75027
SBD 8.058149
SCR 13.711878
SDG 601.499357
SEK 9.01886
SGD 1.271375
SHP 0.750259
SLE 24.450175
SLL 20969.499267
SOS 570.497977
SRD 37.818026
STD 20697.981008
STN 20.780851
SVC 8.750011
SYP 11059.574895
SZL 16.130113
THB 31.515498
TJS 9.370298
TMT 3.505
TND 2.900328
TOP 2.40776
TRY 43.613505
TTD 6.771984
TWD 31.623501
TZS 2574.999815
UAH 42.955257
UGX 3558.190624
UYU 38.652875
UZS 12280.366935
VES 377.985125
VND 25950
VUV 119.988021
WST 2.726314
XAF 556.381418
XAG 0.013042
XAU 0.000202
XCD 2.70255
XCG 1.802328
XDR 0.692248
XOF 556.381418
XPF 101.156094
YER 238.397502
ZAR 16.05245
ZMK 9001.187145
ZMW 18.62558
ZWL 321.999592
  • JRI

    0.1000

    12.98

    +0.77%

  • RBGPF

    0.1000

    82.5

    +0.12%

  • CMSC

    0.0590

    23.609

    +0.25%

  • NGG

    0.7100

    87.6

    +0.81%

  • CMSD

    0.0100

    23.9

    +0.04%

  • SCS

    0.0200

    16.14

    +0.12%

  • RELX

    -0.5800

    29.51

    -1.97%

  • BCC

    1.6000

    90.76

    +1.76%

  • RIO

    1.9180

    93.038

    +2.06%

  • RYCEF

    0.0500

    16.67

    +0.3%

  • AZN

    5.5500

    192.71

    +2.88%

  • BCE

    -0.1720

    25.398

    -0.68%

  • GSK

    0.6900

    59.86

    +1.15%

  • BP

    0.8500

    39.02

    +2.18%

  • VOD

    0.4090

    15.029

    +2.72%

  • BTI

    1.0250

    62.985

    +1.63%

EU gives Germany free pass over defence spending
EU gives Germany free pass over defence spending / Photo: © AFP/File

EU gives Germany free pass over defence spending

Germany will escape EU punishment for breaking the bloc's budget rules because of a defence spending exemption, the European Commission said on Tuesday.

Text size:

Germany's public deficit is expected to be above three percent in 2025, but it will not be punished because it is "fully explained by the increase in defence spending", the EU executive said.

Under the budget rules, a state's debt must not go higher than 60 percent of national output, with a public deficit of no more than three percent.

But earlier this year, Brussels allowed states to splash out up to 1.5 percent of national output on defence for four years without fear.

Germany was among 16 states including Denmark and Poland to seek exemptions.

Berlin usually calls for budgetary discipline in the European Union but with Europe facing greater threats from Russia and fears of the bloc falling further behind China and the United States, it has itself pivoted on spending.

German Chancellor Friedrich Merz this year relaxed strict debt rules and unleashed a spending blitz on infrastructure and defence in a bid to revive the eurozone's traditional powerhouse after two years of recession.

Now the commission said it expects Germany's deficit -- the shortfall between government revenue and spending -- to reach 3.1 percent this year.

While Berlin was set to escape censure, Brussels said it will formally propose opening an excessive deficit procedure for Finland because its deficit is also higher than the rules allow, and it is only "partly explained by the increase in defence spending".

The EU has already opened similar procedures against Austria, Belgium, France, Hungary, Italy, Malta, Poland, Romania and Slovakia.

Such action kickstarts a process forcing a country to negotiate a plan with Brussels to get their debt or deficit levels back on track.

Meanwhile, France is respecting the commitments it made to Brussels to reduce its high public deficit, the commission said, although it added its "assessment is surrounded by considerable uncertainty".

France is under pressure to pass a spending bill by the end of the year to rein in its deficit and soaring debt, but efforts have been hampered by a political deadlock.

I.Ko--ThChM