In his draft report published on 14 August, MEP Christophe Gomart (EPP, French), rapporteur on ‘European defence readiness 2030: assessment of needs’, called for easier financing of defence contractors.
The MEP calls for a stable basis and long-term vision for private investment in defence, encouraging each Member State to publish a detailed strategic vision of its military spending up to 2030, including its capability objectives.
Mr Gomart also calls on the Commission to consolidate and clarify the defence envelope in the 2028-2034 Multiannual Financial Framework, “exploring all options to support Member States’ defence investments without increasing their contributions or taxation, in particular through existing mechanisms”. Further announcements from the Commission are expected on 3 September.
The MEP is calling for adapting the Union’s budget and financing tools to meet security challenges and the needs of businesses. In his view, it is important to improve the accessibility and coherence of European investment support funds for companies in the European defence technological and industrial base (EDTIB), by adjusting eligibility criteria, simplifying application procedures and harmonising the objectives of the work programmes.
Regretting that the European Investment Bank’s (EIB) investment policy still excludes “arms and munitions”, Mr Gomart called for the bank to strengthen its commitment to the European defence industry and for its mandate to be extended to include support for the EDTIB within a specialised subsidiary. In addition, welcoming the initiative to create the Defence Financing Facility, with a budget of €175 million for the period 2024-2027, Mr Gomart encourages the bank to increase the amount to €1 billion “in order to better meet the equity needs of the EDTIB and its value chain”. He would also like the EIB, with the support of Member States, to raise €4 billion for short-term loans with risk guarantees of up to 50%.
Similarly, in his view, the EIB’s defence commitment criteria need to be simplified and made more flexible, and eligibility extended to indirect subcontractors.
Lastly, the MEP is calling for opening up exit opportunities on asset markets for defence assets by mobilising private capital. This should include support for a European market of specialised investors offering a full range of financing (credit, private debt and equity) to EDTIB companies at all stages of their development. He also wants the Commission to relax antitrust rules to facilitate intra-European consolidation in the event of strategic defence companies coming under European control, while asking Member States to step up their controls on direct investment by foreign players.
Other MEPs are invited to table their amendments by 8 September.
See the draft report: https://aeur.eu/f/i5m (Original version in French by Camille-Cerise Gessant)