EU agreed to bolster defense
By Ansgar Haase and Doris Pundy
Brussels (dpa) — Representatives of the governments of the European Union and the European Parliament agreed in Brussels on Thursday evening to provide EU financial aid amounting to €1.5 billion ($1.75 billion) by the end of 2027 to strengthen the defence industry.
The funding, agreed after weeks of difficult negotiations, was announced by the current Danish EU Council presidency. These funds can be used, for example, for the expansion of production capacities and the joint procurement of armaments.
It is conceivable that the funds could contribute to financing the four major European rearmament initiatives proposed by the European Commission earlier on Thursday.
The projects are particularly aimed at significantly improving air defence and the protection of the eastern flank by 2030. This includes a new drone defence system planned to be operational by the end of next year at the latest, and fully operational by the end of 2027.
All projects primarily focus on deterrence and defence against Russia.
“The recent threats have shown that Europe is at risk. We have to protect every citizen and square centimetre of our territory. And Europe must respond with unity, solidarity and determination,” European Commission President Ursula von der Leyen said, announcing the rearmament projects earlier Thursday.
To ensure that companies from EU states primarily benefit from the funds, the agreements for the new programme stipulate that components from partner states like the United States may only be sourced to a very limited extent in funded defence industry projects. The details of this regulation were long contested. However, there are special agreements for Ukraine, with which defence policy cooperation is to be significantly strengthened.
Criticism of budget
The draft for the programme to strengthen the defence industry was developed by the European Commission prompted by Russia’s war against Ukraine. The leaders of the EU member states agreed at a meeting in Versailles on March 11, 2022, to strengthen Europe’s defence capabilities – including through more joint projects.
Incentives are now to be provided for the joint procurement of defence goods and the strengthening of the production capacities of the defence industry.
German conservative Member of the European Parliament (MEP) Michael Gahler, who was involved in the negotiations, said the programme, known as EDIP, has the potential to significantly support the development of European defence capability by 2030.
At the same time, he said it includes a range of measures for support and deeper cooperation with Ukraine, Gahler said.
This not only strengthens the first line of defence against Russia, but also benefits from Ukraine’s impressive innovative strength, he said. Unfortunately, Gahler criticized, the budget remains far behind ambitions at €1.5 billion for the time being.
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