Oireachtas Joint and Select Committees

Wednesday, 15 October 2025

Joint Oireachtas Committee on Finance, Public Expenditure, Public Service Reform and Digitalisation, and Taoiseach

Scrutiny of EU Legislative Proposals

2:00 am

Mr. Matthew McGann:

I can come in on that. I think the Deputy is referring to is the national escape clause under the Stability and Growth Pact, SGP, where member states can have an additional excess up to 1.5% of GDP over the net expenditure path they have submitted that has been approved in their medium-term plan. For the main national expenditure clause under the SGP, borrowing under SAFE is limited to statistical measurement of defence expenditure, known as the classification of the functions of government, COFOG, 2, which is the European system for classification of expenditures. Any borrowing or expenditure that is funded through SAFE is also eligible for the national escape clause. However, it is still limited within the 1.5% of GDP cap for each member state.

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