site.btaEC Recommends Activation of National Derogation Clause for 16 EU Countries, Including Bulgaria

The European Commission has recommended triggering the national derogation clause of the Stability and Growth Pact for 16 EU member states, including Bulgaria. This temporary measure will allow these countries to exceed the usual limits on net expenditure growth in order to increase defense spending, the Commission announced as part of its Spring Package within the European Semester framework.

The European Semester is an annual cycle of economic and social policy coordination aimed at enhancing competitiveness, prosperity, and resilience across EU economies. The activation of the national escape clause is a first in response to growing security challenges, allowing a transition to higher defense budgets while maintaining fiscal sustainability, the Commission noted.

Alongside Bulgaria, the clause has been requested by Belgium, Croatia, Czechia, Denmark, Estonia, Finland, Germany, Greece, Hungary, Latvia, Lithuania, Poland, Portugal, Slovakia, and Slovenia. The Commission added that other member states can still apply to activate the clause, emphasizing that it is “too early to make a definitive assessment of the additional defense spending expected in this context.”

The package of documents also includes the first assessment of member states’ progress under the revised economic governance framework and their fiscal structural reform plans.

This year’s country reports review implementation of Recovery and Resilience Plans (RRPs) and cohesion policy programs. Given that the Recovery and Resilience Facility (RRF) is set to end in 2026, the Commission stressed the importance of swift and targeted implementation, noting that most member states must accelerate their progress.