EU Council recommendations on escape clauses

Following the special regime of Lithuania's general government fiscal rule, if EU Council recommendations on the excessive deficit procedure, the macroeconomic imbalance procedure, and/or the national escape clause are in force, net expenditure growth must comply with the growth rate specified in those recommendations. The rule does not apply only when the general escape clause is activated for all EU Member States.

A national escape clause for defence expenditure is in force for 2025–2028; therefore, the application of the general government fiscal rule reflects the Council recommendation activating this clause. The Council recommendation allows a deviation from the commitment to comply with the net expenditure growth limits set out in the current Fiscal Structural Plan (FSP), provided that:

• during this period, planned and actual general government deficits exceed the corresponding deficit limits by no more than 1.5 percentage points of GDP;
• and, compared with the baseline year of 2021, defence expenditure remains elevated by 1.5 percentage points of GDP;
• while ensuring that long-term fiscal sustainability is preserved.