Hatzidakis: Activation of National Escape Clauses Must Ensure Equal Treatment Among EU Member States

In discussions held yesterday and today (March 11, 2025) during the Eurogroup and ECOFIN meetings in Brussels, Greece’s Minister of National Economy and Finance, Kostis Hatzidakis, emphasized that uncertainty has intensified both in Europe and globally. He stressed it would be a tremendous mistake not to proceed towards a genuine common defense policy. Greece has always supported this approach without ignoring the need for fiscal balance. The main topic of discussion was financing increased defense needs in light of recent decisions by the European Council on March 6 to mobilize €800 billion over the next four years to address growing geopolitical challenges. Hatzidakis highlighted the necessity for joint, rapid, and coordinated action among EU member states to achieve the best possible outcome. Regarding fiscal flexibility in defense spending, he expressed satisfaction with the European Council adopting a long-standing Greek position. He also emphasized that activating national escape clauses must ensure equal treatment among member states, offering fiscal benefits to those already meeting NATO defense spending targets, like Greece. “Our country has invested significant resources in strengthening its defense capabilities for many years due to border protection needs, bearing the corresponding financial cost. It would be unjust for us to be at a disadvantage now when all of Europe faces a similar challenge,” he stated. Concerning the proposal for a European Defense Fund, the Greek Minister described the development as positive, referring to the recent joint initiative by the Prime Ministers of Greece and Poland to create a common European anti-missile shield. Additionally, he underscored the importance of prioritizing joint procurement and investments to ensure efficient use of available resources and strengthen the European defense industry structurally. The €150 billion from the new fund should primarily be used as an investment in the strategic autonomy of the EU in defense. Hatzidakis also stressed preserving the EU’s Cohesion Policy as a cornerstone for balanced European economic growth, noting that any voluntary redistribution of resources during the current programming period should not set a precedent for the next Multiannual Financial Framework.