As of: March 28, 2024, 8:42 p.m
By: Bona Hyun
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Joint arms industry and conversion to a “war economy”: The EU has big plans. However, there are also side effects, experts argue.
Berlin – Right step, lack of effect? The EU wants to ramp up plans for a common arms industry in times of the Ukraine war. The plans sought by the EU Commission include, among other things, a market for defense equipment. The central proposal is that the joint procurement of weapons should become the norm. But apparently the EU needs to think through some of the projects again.
Demand for a common EU defense industry because of the war in Ukraine
Recently, calls for a common EU defense industry have become increasingly louder. “We have a very fragmented defense market and that needs to change,” Commission President Ursula von der Leyen told the
Financial Times
in February .
The EU Commission wants to push ahead with plans for a common arms industry. © IMAGO/Xinhua
The EU therefore presented a strategy for an arms industry for the first time in March. The new strategy is intended to guarantee that the European defense industry can produce faster, better and together, said Thierry Breton, the EU Commissioner for the Internal Market.
The EU is planning a common arms market – but with how much money?
In the future, a new committee will mediate the needs of the EU member states when it comes to arms sales, and there will also be arms cooperation, common procurement rules, tax incentives and EU funds. The EU Commission also wants to involve Ukraine in the plans. However, many questions still remain unanswered.
In a study by the Brussels think tank Bruegel, economist Guntram Wolff praises the fact that the Commission is setting the right “new tone” for the future defense policy debate in the EU. However, there are still uncertainties regarding financing issues. Both the Commission and the states avoided discussions about which common financial sources would be required for joint arms procurement.
After a meeting with representatives of the German defense industry, Economics Minister Robert Habeck (Greens) also indicated that there was also a need for optimization in defense industry spending. The volume that Europe spends on defense is not small, Habeck said on Wednesday (March 27). “But we don’t always spend the money effectively.”
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Another point of criticism from Wolff is the excessive optimism with regard to production capacities. The EU Commission is too optimistic about the current production potential of the defense industry in the EU and is therefore underestimating the challenge of producing enough weapons and ammunition for Ukraine, the
FAZ
quoted from the study.
The EU will not be able to cover Ukraine's ammunition needs until 2026 at the earliest. The EU has already had to admit that it cannot keep its ammunition promise to Ukraine. By March they had actually promised Ukraine a million rounds of artillery ammunition.
Criticism of EU plans for a common arms industry: “not at the expense of foreign supply”
Wolff also does not understand why greater independence for European armaments is so important for the Commission. According to plans by the EU Commission, the import share of defense equipment should fall to 50 percent by 2030. On the one hand, it is not clear from the plans why the Commission attaches so much importance to independence.
On the other hand, the dependence on the American arms industry cannot be easily reduced. Higher arms production in the EU is necessary. “In the short term, however, it must not be at the expense of the foreign offer,” writes Wolff.
EU plans joint arms industry – Germany wants to boost production
If the EU Commission implements the plans soon, Germany could also play an important role. Representatives are already welcoming the increase in goods production. “If we look to Russia, we must see that we also increase the production of goods that increase the country's security capability in Germany and in Europe,” said Vice Chancellor Habeck on Wednesday. Further discussions on this will follow. (bohy with material from the dpa)