Hanging together in times of war: Europe’s budgetary powers at the service of defence

Russia’s all-out war against Ukraine, followed by Trump’s reelection as US President, force Europe to take greater responsibility for its own defence, not in the least by increasing defence expenditure. The article argues that this requires the European Union and the Member States not only to devote more budgetary resources to defence, but also to use their budgetary powers with greater flexibility. It shows they have started to act on this requirement in three ways: (1) devoting a greater part of the EU budget to defence; (2) engaging in collective debt financing; and (3) activating the national escape clause in the Stability and Growth Pact. Taken together, these measures illustrate how, under the pressure of events, the EU and the Member States learn to put their budgetary powers at the service of European defence.