EU relaxes budgetary rules for member states investing in arms manufacturing

Bloomberg reported that the European Union has decided to give its members a grace period of 7 years to reduce the budget deficit to 3% of GDP if it is invested in the production of weapons and ammunition.

And the agency said on Saturday, citing sources, that these benefits are part of a package of proposals submitted by the European Commission to reform the EU’s basic economic document – the Pact on Stability and Growth of the EU’s gross domestic product.

During the pandemic, the European Commission officially suspended the commitment to implement these standards. It is currently being violated by most of the EU countries, whose budgets have suffered after the epidemic through the introduction of unprecedented sanctions against Russia.

Military spending on the production of weapons, ammunition and missiles will be seen as supporting one of the EU development priorities along with the development of green energy.

Investment in these areas will give countries a grace period of up to seven years to bring their macroeconomic performance in line with the Sustainable Growth Pact.

Source: TASS

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