Belgium supports the European Commission's proposal to grant more budgetary leeway to Member States that invest more in defence, Budget Minister Vincent Van Peteghem confirmed on Monday.
However, more is needed, and the European Union must also explore the possibility of a common financial instrument, the Deputy Prime Minister added on his arrival at a Eurogroup meeting in Brussels.
On Friday, European Commission President Ursula von der Leyen proposed activating the derogation clause for defence investments in the European budgetary framework. This should allow Member States to increase their defence spending considerably, in a controlled and conditional manner, according to the Commission president.
During the Covid crisis, the EU activated a general derogation clause so that Member States could provide massive support for their economies; the clause mentioned on Friday would be limited to defence investments.
Granting additional budgetary leeway at the national level is one of the avenues the EU is exploring to finance more defence investment. However, "it cannot stop there," according to Mr Van Peteghem.
‘We must also consider other possibilities, such as a common European financial instrument," Van Peteghem said.
This type of instrument, which could theoretically take the form of a new common loan, has traditionally met with reluctance from Member States with the soundest budgets, while the most indebted ones tend to be more in favour of it.
On Friday, Italian Prime Minister Giorgia Meloni also argued in favour.
With the debate on the EU's post-2027 budget (MFF) just around the corner, these ideas are back on the table.
Finally, like other countries, Belgium is in favour of more investment in the European defence industry via the European Investment Bank (EIB).
In its coalition agreement, the Belgian federal government is already planning to refinance defence through a new fund financed by asset sales. It has committed itself to an accelerated growth path towards 2% of GDP for defence spending by 2029 and 2.5% by 2034.
