The EFB is of the view that, excluding defence spending, fiscal restraint is appropriate in 2026, along the lines of the Council recommendations of January 2025. Flexibility under the national escape clauses should be limited strictly to ramping up defence spending. To bolster the credibility of their public finances, Member States resorting to the national escape clause should outline robust medium-term strategies for financing permanently higher defence spending starting with the draft budgetary plans for 2026. The medium-term strategies should involve commensurate adjustments on the expenditure and/or the revenue side of national budgets.
