As of: February 29, 2024, 1:30 p.m
By: Bona Hyun
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Alternatively: Signal to Putin instead of bulwark, because Pol also had a similar line in yesterday's text
More money, more planning security and more coordination: The EU wants to expand the arms industry with new strategies.
A draft is already available.
Brussels – In the wake of the Ukraine war, the EU is seeking new strategies to strengthen the defense industry in Europe.
According to reports, the EU Commission wants to publish the draft in the coming days.
Among other things, it involves subsidies to increase production capacities, build up reserves and promote investments.
“Geopolitical developments demonstrate the imperative for Europe to take greater responsibility for its own security and prepare to effectively address the full spectrum of threats it faces,” Bloomberg quoted
the
document as saying.
EU wants to present strategies for expanding the European arms industry
Among other things, the draft states that the European Union would like to procure half of its defense systems within the EU by 2035.
A minimum floor should ensure that between a third and half of defense spending goes to European defense companies.
To date, member states have sourced a large proportion of their military equipment from third countries.
78 percent of the arms purchases that EU countries made between February 2022 and June 2023 were made outside Europe, according to the document, which is also quoted by the
Süddeutsche Zeitung
.
Of these orders, 63 percent went to the USA alone.
Moscow ruler: the Russian autocrat Vladimir Putin.
© IMAGO/Alexander Kazakov
EU measures to develop the defense industry – promoting investments
The EU Commission also wants to financially support the build-up of stocks in order to reduce delivery delays for potential buyers.
The draft provides for a simplification in the procurement of defense equipment.
The Commission also wants to subsidize the production capacity of the European defense industry with one billion euros - through loans and 100 million euros from public funds - to support the industry even when demand is weak.
A brand new pot of money is earmarked for this, called the “Fund to Accelerate Defense Supply Chain Transformation,” writes
Politico magazine.
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Background: The EU's defense programs and funds were multiplied after Russia's war in Ukraine.
The European Defense Industrial Strategy (EDIS) and the European Defense Industrial Program (EDIP) emerged in this context.
On July 19, 2022, the Commission adopted a proposal for a regulation strengthening the European defense industry through joint procurement (EDIRPA).
The short-term financing instrument, worth 500 million euros, is intended to create incentives for joint defense procurement among member states.
Bulwark against Russia and Putin: von der Leyen wants to “invest in Europe”
EU Commission President Ursula von der Leyen announced plans for a new strategy.
On Wednesday (February 28) in Strasbourg, she spoke out in favor of expanding the European arms industry and increasing arms production.
The focus must be on the principle: “Europe must spend more, spend better, spend Europeanly.”
Von der Leyen also said that they would examine how guarantees could make firm purchase contracts easier.
This means the defense industry can rely on stable orders in the long term and have more planning security.
The EU Commission President also made it clear in an interview with the
Financial Times
that she wants to use the EU states' growing investments in weapons, ammunition and soldiers to build a new European defense industry.
EU is struggling to use Russian funds – USA is putting pressure on it
Expanding European arms production could help Ukraine on the front in the long term.
In addition to expanding the European defense industry, the EU is discussing further measures.
The EU is currently wrestling with the use of Russian funds for Ukraine.
The major democratic industrial nations are considering how they can use frozen Russian capital to benefit Ukraine.
Finance Minister Christian Lindner (FDP) and his French colleague Bruno Le Maire insisted on the sidelines of a G20 finance ministers meeting in São Paulo on Wednesday that only income such as interest profits from these assets should be channeled to Ukraine.
The USA, on the other hand, is putting pressure on them: they would prefer to collect Russian money directly.
Russian assets worth 285 billion US dollars (262 billion euros) are currently frozen, said US Treasury Secretary Janet Yellen in São Paulo.
The coalition of G7 countries, allies and partners must “urgently find a way to unlock these assets to support Ukraine’s ongoing defense struggle and long-term reconstruction.”
Seizure of the assets is the easiest option.
(bohy with agencies)