Macron Calls EU Deficit Rule 'Outdated,' Urges Greater Spending Flexibility

The French president argues the 3% deficit cap hinders necessary investments in defense, AI, and climate initiatives.

Emmanuel Macron criticized the EU's rule limiting public deficits to 3% of GDP, calling it 'outdated' in an interview with the Financial Times.
He emphasized that Europe must accelerate investment in critical areas like defense, artificial intelligence, and climate transition to remain competitive.
France's public deficit reached approximately 6% of GDP in 2024, prompting EU scrutiny and potential sanctions for excessive deficits.
Macron proposed innovative financing solutions, such as joint EU borrowing, similar to measures taken during the COVID-19 pandemic.
He also called for revising other EU regulations he deemed impractical, including penalties for automakers failing to meet electric vehicle sales quotas.