EU: Arms industry to become more efficient and independent

2024-03-06 09:27:00, Kosova & Bota CNA

Massive expansion of European arms production and more independence from the US: this is the goal of a long-awaited defense strategy that the EU Commission presented in Brussels. "We have to take more responsibility for our own security," said Commission Vice President Margrethe Vestager - regardless of whether Donald Trump is re-elected US President. Trump has threatened to stop protecting Europeans if he wins the election in November.

More "Made in Europe" weapons and greater independence from international arms manufacturers such as the US and South Korea are at the heart of the new strategy, which Vestager presented together with Internal Market Commissioner Thierry Breton and the Representative of EU Foreign Affairs, Josep Borrell.

Since the start of Russia's war of aggression in Ukraine two years ago, EU countries have bought 70 percent of the weapons they sent to Ukraine from the US, it was said in Brussels. "The improved ability to act will make us a stronger NATO ally," said Margrethe Vestager, stressing that the Europeans will continue to remain loyal to NATO.

More defense budget

The draft law for a European Defense Industry Program (EDIP) requires member states to plan much more money for armaments and defense than before: by 2030 they must spend "at least 50 percent of their defense procurement budget within the EU.By 2035 this amount should be even 60 percent.

In addition, by 2030, EU countries must purchase together at least 40 percent of their defense equipment. In 2007, the EU set a voluntary target of 35 percent, but currently the 27 member states are far from that, despite Russia's war of aggression in Ukraine.

Commission President Ursula von der Leyen added on the X online service that EU member states should not necessarily spend more, but should coordinate "better at the European level" on defense spending.

Reserves from member countries

According to the EU, the creation of a European defense fund worth 100 billion euros is necessary. German Finance Minister Christian Lindner has consistently rejected such an instrument financed by EU debt. And the French president, Emmanuel Macron, and countries like Belgium or Estonia support him.

The financing of the program now proposed for the defense industry will be much more modest, also due to reservations from the German side. The EU Commission initially proposes that subsidies of up to 1.5 billion euros be made from the EU budget until 2027, as well as to remove the VAT for the joint procurement of weapons. This is not enough, Vestager said, however, the money can serve as an incentive for investment by member states.

Ukraine with the status "as if it were a member state"

Ukraine should be included in the armament plans "as if it were a member state", said an EU official. The cooperation for artillery ammunition, for which there has been a joint procurement initiative for almost a year, will serve as a model for this. .

However, plans for ammunition fell through. The EU may send Ukraine only about a third of a million bullets promised by the end of March, as EU foreign policy chief Borrell confirmed. "We had hoped for a greater participation from the member countries", said the Spaniard Borrell./ DW