site.btaSetting Defence Target of 2.5% of GDP Is Reasonable - Minister Zapryanov

A procedure to exempt defence spending and military industry costs from the inflation index will be adopted, Bulgaria's Defense Minister Atanas Zapryanov has told reporters in Munich where he attended the 61st Munich Security Conference, Zapyanov’s Ministry said on Saturday evening. He added that setting a defence target of 2.5% of GDP is reasonable.

The Minister said that this proposal came from Bulgaria, which has been advocating for it at EU defense ministers' forums for over a year. "We are glad that the European Commission (EC) and the Member States have accepted this and will now discuss how to implement it," he said.

On Friday, EC President Ursula von der Leyen announced plans for the Commission to propose exempting defence spending from EU government budget limits. This change implies that financial expenditures for the modernization of Bulgaria's Armed Forces will no longer be included in the inflation index, which had previously hindered the defence budget's growth, Zapryanov said.

"We do not seek a dramatic increase in the defence budget. We must consider the economy's capacity to generate resources, including for defence," he said, adding that with a modest increase, "we could reach between 2.5% and 3% of GDP". He added that the defence budget must grow to implement new defense strategies in response to emerging security threats.

Zapryanov noted that new defence capabilities need to be developed to implement the plans, and he will soon propose 2025 Capability Goals to the government. He stressed that these goals cannot be achieved with 2% defence spending.

The second day of the conference in Munich focused on topics such as Germany's vision for European security, Europe's support for Ukraine, transatlantic security, and strengthening NATO’s deterrence and defence capabilities. Key speeches included those by German Chancellor Olaf Scholz, Ukraine’s President Volodymyr Zelenskyy, and NATO Secretary General Mark Rutte, the Defence Ministry’s press release said.

"NATO remains the guarantor of military security in Europe. While we are far from forming a European army, the discussion is moving in that direction. What we must do and will do is encourage European countries to boost their military budgets and enhance their defence capabilities. By investing in these capabilities, we are also investing in the capabilities of the EU and NATO, as almost all European countries belong to both," Zapryanov said.

On the sidelines of the conference, the defence ministers of Bulgaria, Romania, and Albania met to discuss progress on Corridor 8 during a coordination meeting. Zapryanov also conferred with Airbus Executive Vice President Stefan Thome and Hensoldt CEO Oliver Dorre to discuss the projects for the modernization of Bulgaria’s Armed Forces implemented by their companies, as well as potential future collaborations. The Bulgarian Minister also attended a luncheon hosted by his German counterpart, Boris Pistorius.