Leveraging new investments is key, the EU executive says
More needs to be done to bolster EU defence capabilities and “strengthen the European defence technological and industrial base, including by leveraging more investments”, the European Commission has said on 27 September.
With its “Towards a more resilient, competitive and sustainable Europe”, the Commission aims to contribute to the forthcoming European Political Community’s debate on the future of EU’s open strategic autonomy and policy objectives for the years to come. The meeting will take place in Granada on 5 October and will gather 47 EU and European leaders. The document is a political one, but the tone is that of urgency.
Amid multiplying crises across and around the continent, the EU feels the increasing pressure to boost its defence with a 360° approach and a particular focus on funding and defence capabilities.
As a result, the Commission is proposing an additional €1.5 billion for the European Defence Fund (EDF) after the mid-term review of the EU budget was carried out. Also, the EU executive is expected to present a European Defence Industrial Strategy to prepare the future framework for defence cooperation, drawing on the experience of the instruments created in the last months to boost military aid to Ukraine and for joint procurement.
Meanwhile, in some EU countries, there is an ongoing debate around a possible widening of the mandate of the European Investment Bank (EIB), which is only authorised to fund peace projects. Such a move would mean that the institution could mobilise funding for defence projects and weapons procurement. This possible shift would be part of an overall strengthening of the European Defence Industry Reinforcement Through Common Procurement Act (EDIRPA) an instrument which should help EU manufacturers to reach wartime production and mobilise funding from the financial sector.
The Commission’s document also takes stock of the work done so far, such as creating EDIRPA and other instruments to send ammunition to Ukraine.
It also highlights that the EDF is boosting innovation and cooperation of the EU industry, having mobilised so far more than 3 billion – and another 1.2 billion is for 2023 – for projects into critical defence domains. On top of that, with the EU Defence Innovation Scheme, “the EU also supports small and medium-sized enterprises, including start-ups and other non-traditional players, in the defence industry ecosystem.”
Commenting on the document, Commission President Ursula von der Leyen said: “Europe has reacted decisively to a rapidly changing geopolitical and economic environment. The new reality requires that we strengthen our capacity to protect Europe’s strategic interests and to provide security for our citizens and partners. Since Versailles, the EU stays the course and is transforming into a more resilient, competitive, and sustainable economy. We will continue to stand together and further deepen ties with partners and those that share our concerns and interests.”
Caterina Tani reporting from Brussels
