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Europe Daily Bulletin No. 8089
THE DAY IN POLITICS / (eu) eu/defence

Council assesses three solutions for defence financing

Brussels, 12/11/2001 (Agence Europe) - The Permanent Representatives of the Member States are to define, on Wednesday, their guidelines for the financing of common foreign and defence policy, with a view to the Laeken Summit that should, in principle, declare how operational the European intervention force is. The Belgian Presidency and the Council secretariat have prepared a document giving a list of spending for operations with military or defence implications, and presenting three possible options for their financing: a) the pooling of all expenditure proportionate to GNP, as provided for in Article 28 of the Treaty (solution backed by Portugal, Luxembourg, Greece and in principle also France); b) the pooling of minimum spending financed by the Community budget and taking in charge the other spending "where it occurs" (maintenance and administration on the theatre of operations, personnel salary, purchase of equipment, etc.), that is, depending on the degree of participation in operations according to the system in force in NATO (a solution supported by the United Kingdom, Germany, Spain and the neutral countries, which consider such a solution would have the advantage of simplifying possible "constructive abstentions": Ireland, Austria, Finland); c) the compromise solution where the main spending would be pooled in proportion to GNP, but additional spending for operations would be taken in charge by the countries taking part in the operations. The Netherlands, Belgium, Italy and France seem in favour of this solution.

During the Laeken Summit, the Heads of State and Government are to take decisions on the financing of ESDP, and on the operational ability of the European intervention force (60,000 men as of 2003), on the basis of results that will be obtained next week during the second "capabilities conference" bringing the defence ministers and foreign ministers together.

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