Latest news with #Domanski
The Star
25-04-2025
- Business
- The Star
Poland likely to apply for EU leeway on defence spending, but worried others won't
FILE PHOTO: Polish Finance Minister Andrzej Domanski (on right) looks on during a Reuters interview at the 2025 annual IMF and World Bank spring meetings in Washington, D.C., U.S., April 24, 2025. REUTERS/Cedeno/File Photo WASHINGTON (Reuters) -Poland is likely to ask the European Commission next week for an exemption from European Union borrowing limits to keep up large defence spending in coming years without breaking EU rules, but is worried that others won't do so, Polish Finance Minister Andrzej Domanski said on Thursday. Apart from Poland, only Portugal has signalled it would ask for the same exemption, a measure the European Commission had hoped would be widely taken up by the 27 EU countries and help boost EU defence investment by 650 billion euros over the next four years to deter a potential Russian invasion. "We are seriously considering applying for the national escape clause," Domanski told Reuters in an interview on the sidelines of the International Monetary Fund and World Bank spring meetings in Washington, adding that the decision would be made by the end of April. The European Commission proposed in March to allow each EU country to raise annual defence spending by 1.5% of gross domestic product for four years, without any disciplinary steps that would normally kick in once a deficit is above 3% of GDP. The exemption is called a national escape clause. But EU countries with high national debt are skeptical of borrowing more to spend on defence, especially if they are geographically distant from Russia. Italy has said it would not ask for the extra leeway. Spain and France are also skeptical. "If those countries won't apply, then it won't probably happen," Domanski said of reaching the EU's spending goal of 650 billion euros ($740 billion). On top of the 650 billion euros of extra national spending, the European Commission proposed that all EU countries jointly borrow 150 billion euros for EU defence projects that would benefit the bloc as a whole - a project called SAFE. Domanski said Poland, which currently holds the rotating presidency of the EU, treated that joint borrowing project as a priority and planned to finalize it in May. But he also said the amount was unlikely to be enough to secure Europe's needs. "Would this be enough? I mean, SAFE on its own? I think it's not enough," he said. EU finance ministers are considering additional ways of raising cash for defence spending, including through a special purpose vehicle or a rearmament bank, but none of these discussions are likely to reach conclusion soon, Domanski said. ($1 = 0.8783 euros) (Reporting by Jan Strupczewski and Karin Strohecker; Editing by Paul Simao)
Straits Times
25-04-2025
- Business
- Straits Times
Poland likely to apply for EU leeway on defence spending, but worried others won't
FILE PHOTO: Polish Finance Minister Andrzej Domanski (on right) looks on during a Reuters interview at the 2025 annual IMF and World Bank spring meetings in Washington, D.C., U.S., April 24, 2025. REUTERS/Cedeno/File Photo Poland likely to apply for EU leeway on defence spending, but worried others won't WASHINGTON - Poland is likely to ask the European Commission next week for an exemption from European Union borrowing limits to keep up large defence spending in coming years without breaking EU rules, but is worried that others won't do so, Polish Finance Minister Andrzej Domanski said on Thursday. Apart from Poland, only Portugal has signalled it would ask for the same exemption, a measure the European Commission had hoped would be widely taken up by the 27 EU countries and help boost EU defence investment by 650 billion euros over the next four years to deter a potential Russian invasion. "We are seriously considering applying for the national escape clause," Domanski told Reuters in an interview on the sidelines of the International Monetary Fund and World Bank spring meetings in Washington, adding that the decision would be made by the end of April. The European Commission proposed in March to allow each EU country to raise annual defence spending by 1.5% of gross domestic product for four years, without any disciplinary steps that would normally kick in once a deficit is above 3% of GDP. The exemption is called a national escape clause. But EU countries with high national debt are skeptical of borrowing more to spend on defence, especially if they are geographically distant from Russia. Italy has said it would not ask for the extra leeway. Spain and France are also skeptical. "If those countries won't apply, then it won't probably happen," Domanski said of reaching the EU's spending goal of 650 billion euros ($740 billion). On top of the 650 billion euros of extra national spending, the European Commission proposed that all EU countries jointly borrow 150 billion euros for EU defence projects that would benefit the bloc as a whole - a project called SAFE. Domanski said Poland, which currently holds the rotating presidency of the EU, treated that joint borrowing project as a priority and planned to finalize it in May. But he also said the amount was unlikely to be enough to secure Europe's needs. "Would this be enough? I mean, SAFE on its own? I think it's not enough," he said. EU finance ministers are considering additional ways of raising cash for defence spending, including through a special purpose vehicle or a rearmament bank, but none of these discussions are likely to reach conclusion soon, Domanski said. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
Reuters
25-04-2025
- Business
- Reuters
Poland likely to apply for EU leeway on defence spending, but worried others won't
WASHINGTON, April 25 (Reuters) - Poland is likely to ask the European Commission next week for an exemption from European Union borrowing limits to keep up large defence spending in coming years without breaking EU rules, but is worried that others won't do so, Polish Finance Minister Andrzej Domanski said on Thursday. Apart from Poland, only Portugal has signalled it would ask for the same exemption, a measure the European Commission had hoped would be widely taken up by the 27 EU countries and help boost EU defence investment by 650 billion euros over the next four years to deter a potential Russian invasion. "We are seriously considering applying for the national escape clause," Domanski told Reuters in an interview on the sidelines of the International Monetary Fund and World Bank spring meetings in Washington, adding that the decision would be made by the end of April. The European Commission proposed in March to allow each EU country to raise annual defence spending by 1.5% of gross domestic product for four years, without any disciplinary steps that would normally kick in once a deficit is above 3% of GDP. The exemption is called a national escape clause. But EU countries with high national debt are skeptical of borrowing more to spend on defence, especially if they are geographically distant from Russia. Italy has said it would not ask for the extra leeway. Spain and France are also skeptical. "If those countries won't apply, then it won't probably happen," Domanski said of reaching the EU's spending goal of 650 billion euros ($740 billion). On top of the 650 billion euros of extra national spending, the European Commission proposed that all EU countries jointly borrow 150 billion euros for EU defence projects that would benefit the bloc as a whole - a project called SAFE. Domanski said Poland, which currently holds the rotating presidency of the EU, treated that joint borrowing project as a priority and planned to finalize it in May. But he also said the amount was unlikely to be enough to secure Europe's needs. "Would this be enough? I mean, SAFE on its own? I think it's not enough," he said. EU finance ministers are considering additional ways of raising cash for defence spending, including through a special purpose vehicle or a rearmament bank, but none of these discussions are likely to reach conclusion soon, Domanski said. ($1 = 0.8783 euros)
Yahoo
25-04-2025
- Business
- Yahoo
Poland likely to apply for EU leeway on defence spending, but worried others won't
By Jan Strupczewski and Karin Strohecker WASHINGTON (Reuters) -Poland is likely to ask the European Commission next week for an exemption from European Union borrowing limits to keep up large defence spending in coming years without breaking EU rules, but is worried that others won't do so, Polish Finance Minister Andrzej Domanski said on Thursday. Apart from Poland, only Portugal has signalled it would ask for the same exemption, a measure the European Commission had hoped would be widely taken up by the 27 EU countries and help boost EU defence investment by 650 billion euros over the next four years to deter a potential Russian invasion. "We are seriously considering applying for the national escape clause," Domanski told Reuters in an interview on the sidelines of the International Monetary Fund and World Bank spring meetings in Washington, adding that the decision would be made by the end of April. The European Commission proposed in March to allow each EU country to raise annual defence spending by 1.5% of gross domestic product for four years, without any disciplinary steps that would normally kick in once a deficit is above 3% of GDP. The exemption is called a national escape clause. But EU countries with high national debt are skeptical of borrowing more to spend on defence, especially if they are geographically distant from Russia. Italy has said it would not ask for the extra leeway. Spain and France are also skeptical. "If those countries won't apply, then it won't probably happen," Domanski said of reaching the EU's spending goal of 650 billion euros ($740 billion). On top of the 650 billion euros of extra national spending, the European Commission proposed that all EU countries jointly borrow 150 billion euros for EU defence projects that would benefit the bloc as a whole - a project called SAFE. Domanski said Poland, which currently holds the rotating presidency of the EU, treated that joint borrowing project as a priority and planned to finalize it in May. But he also said the amount was unlikely to be enough to secure Europe's needs. "Would this be enough? I mean, SAFE on its own? I think it's not enough," he said. EU finance ministers are considering additional ways of raising cash for defence spending, including through a special purpose vehicle or a rearmament bank, but none of these discussions are likely to reach conclusion soon, Domanski said. ($1 = 0.8783 euros) Sign in to access your portfolio
Yahoo
07-04-2025
- Business
- Yahoo
EU finance ministers to discuss tariff impact on economy
BRUSSELS (Reuters) - European Union finance ministers will discuss on Friday how to tackle the expected blow to Europe's economic growth from tariffs imposed by the United States on EU goods, the chairman of the meeting Andrzej Domanski wrote in an invitation letter. Domanski, the finance minister of Poland which holds the rotating presidency of the EU until June, said the ministers should consider tighter integration of the EU's own internal market as a response. "Disrupted supply chains and rising costs for companies will affect European growth ratios and currencies," Domanski wrote ahead of the meeting in Warsaw. "This will have adverse social consequences, increasing prices for consumers and leaving citizens more vulnerable. We will focus on the broader economic implications ... on Friday," he said. The European Central Bank forecast last month - before the U.S. announcements on tariffs - that euro zone economic growth would be around 0.9% this year and inflation at 2.3%. Since then, Washington has imposed 25% tariffs on European steel, aluminium and cars and 20% of almost all other goods. The U.S. also slapped reciprocal tariffs globally, triggering a market sell-off on fears of inflation, weaker demand and potentially a global recession. Domanski said that removing EU regulatory barriers hampering trade between the EU's 27 countries should be the natural response to the U.S. move. The International Monetary Fund has said such regulations were equivalent to an over-40% tariff on goods and 110% on services. "A key objective of our discussion must also be to demonstrate the unity of the European Union," he said. "Our strength lies in our solidarity." Sign in to access your portfolio
