The EU plans to borrow 150 billion euros from the financial market for a new lending equipment security action (safety) for Europe. This is one of the pillars of the preparations for 2030, with the aim of mobilizing 800 billion euros for defensive investments by the end of the decade.
“The Russian war in Ukraine and the EU’s attempt to support Kiev really highlighted the dependency and shortcomings of the EU’s defense industrial bases and how unprepared we were if we were forced into traditional wars.”
“Safety means firing European weapons production lines by allowing member states to be purchased strategically and together, so that the industry will be produced faster, faster, and our troops will become more important.
This investment should enhance the production and procurement of air and missile defense, artillery systems, missiles, ammunition, and other critical military equipment to protect critical infrastructure and address security threats such as cyber, artificial intelligence, and electronic warfare.
“It gives countries the possibility to find money to buy military equipment. It’s the beginning, and I think that’s a very good sign,” said Mep Marie-Agnes Strack-Zimmermann of Germany from the update group.
The Parliament, which chairs the European Parliament’s Security Committee, also emphasized that some technologies may be double-use and serve private purposes.
The Euronows spoke to the Roman residents and their opinions were divided. “We need to protect ourselves and the threat lies at our doorstep,” one said. “They should not increase their spending on wars that don’t happen. This is not our war,” said another resident of the Italian capital, referring to Russia’s invasion of Ukraine.
In Berlin, the same division was clear. “If the objective is to launch another arms race, I don’t agree,” said one German city. “I’m all in a joint European defence effort, but I don’t have any debt,” another said.
Partnership with like-minded countries
The government must repay for more than 45 years and can also activate the national escape clause of the stability and growth PACT, which stipulates that the budget deficit cannot exceed 3% of GDP.
Under safe, the government can exceed this figure by 1.5% per year. More than half of the member countries have requested revitalization from the European Commission.
To receive a loan, the government must meet certain conditions. 65% of the value of each military equipment must be produced in one of the 27 EU member states, either Ukraine and European Free Trade Association (EFTA) members Iceland, Liechtenstein or Norway.
The remaining 35% can come from any third country in the world. Common procurement includes EU candidate countries such as the Western Balkans, and third countries with bilateral security and defense partnerships such as Japan, South Korea and the UK.
However, the EU relies heavily on weapons purchased from the US, and the increase in investment could clearly demonstrate the Bullock’s commitment to becoming more autonomous, which President Donald Trump has requested in the NATO framework.
“I am optimistic that the US president will recognize what we are starting now,” Strack-Zimmermann said.
The EU is planning to raise more funds, and the European Commission proposes to use some of the unity fund aimed at regional development. The European Investment Bank will also be mobilizing private funds in the region for the first time.
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Journalist: Isabel Marquez da Silva
Content Production: Pilar Montero López
Video production: Zacharia Vigneron
Graphism: Loredana Dumitru
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