The European Union is moving toward easing its fiscal rules to allow for more defense spending after a U-turn from Germany won support from some traditional opponents of increasing borrowing.

Northern European countries traditionally unenthusiastic about higher spending are wary of Germany’s new-found desire to splash the cash.

Germany opened the door on Wednesday to changing EU fiscal rules -- the Stability and Growth Pact -- to help governments spend more on defence in the long term without worrying about EU-imposed spending limits or disciplinary action,