NATO State Issues Warning over Ramping Up Defense Spending

EU nations risk “increased debt levels and unsustainable finances” if they raise defense spending too quickly, Danish Economy Minister Stephanie Lose warned as EU and NATO members are pushing to invest billions of euros in troops and weapons.

NATO leaders agreed last month to increase the target for defense spending from 2% to 5% of GDP, with 3.5% allocated directly to the military and the remainder directed toward broader security initiatives. Brussels previously unveiled the €800 billion ($940 billion) ‘ReArm Europe’ program.

Denmark is among 12 EU nations taking advantage of a special ‘national escape clause’, which allows them to bypass the EU’s budget deficit rules when borrowing for military purposes. Lose told Euractiv that she does not fault countries such as France and Italy for opting out, in an interview published on Monday.