On Thursday 27 June, the heads of state or government of the European Union countries called on the European Commission and the High Representative of the Union for Foreign Affairs to present “developed” options for “public and private” funding to strengthen the defence technological and industrial base and address critical capability gaps.
The reference to both public and private funding is said to have been added to the draft conclusions in order to please the Dutch Prime Minister, Mark Rutte, and the German Chancellor, Olaf Scholz.
Speaking to the media, the President of the European Commission, Ursula von der Leyen, estimated the amount needed at €500 billion over 10 years. According to her, almost €11 billion is available in the 2021-2027 Multiannual Financial Framework and almost €11 billion in the ‘European Peace Facility’. But “more money is needed”, she insisted.
The President put forward the possibility of additional national contributions or an agreement on new resources at EU level. “The proposal on this subject is on the Council’s table”, she added.
In her view, a second question arises: “Are leaders calling on these resources immediately or will they use the borrowing power of the EU budget and call on these resources later?
“None of these options is easy. They must all be examined with the political will to decide what to do together, but they must be studied seriously”, warned Ms von der Leyen.
While the Greek Prime Minister, Kyriákos Mitsotákis, said that Europe’s defence capability cannot be strengthened from national budgets alone, the German Chancellor, Olaf Scholz, stressed that, under the Treaties, the EU is not used to finance arms and defence projects. “We can understand that projects are being developed to strengthen national armaments, but this is not an EU mission, it is more a NATO mission”, he warned.
To see the conclusions of the European Council: https://aeur.eu/f/cux (Original version in French by Camille-Cerise Gessant with the editorial staff)