In an uncertain geopolitical environment, with the Ukraine War, the tensions in the Middle East and the commercial pressures of the new US Donald Trump administration, the EU starts a key conversation in this legislature: how to boost defense spending. The EU leaders meeting that took place this Monday in Brussels comes out with a message: The European Commission opens to give greater fiscal margin to the member states for defense spending.
The meeting of heads of state and government of the EU has left on the table various formulas with which to increase the investment of the block in defense. With regard to national public financing, the European Commission has opened to explore greater flexibility in fiscal rules to promote spending in this item. To this is added a greater amplitude of loans that the European Investment Bank can allocate to projects of these characteristics and the modernization of banking.
The new stability and growth pact establishes that “in extraordinary circumstances, extraordinary measures” are taken to increase the defense spending, the head of the Community Executive explained at a press conference, Ursula von der Leyen. “We are at an extraordinary moment,” he said, subsequently, to ensure that Brussels will give greater “Flexibility to spending and investment in defense and more fiscal space for member states”.
Another of the formulas on the table is that the body led by Nadia Calviño modifies its loan policies, expanding the optics beyond the projects for dual, civil and military purposes, which currently finances. To this added the German the role of the banking sector, traditionally “I reluctant to finance this type of projects” and the hope that Bei practices will continue and modernize its loan policy.
On the table there were other approaches of member states such as Poland and Greece that, last May, presented a proposal to the EU to form a European anti -aircraft defensive system. The proposal had broad support among community leaders. “Advanced air defense is absolutely necessary with the experience of war on our borders“The head of the Community Executive said.
For his part, the president of the EU Council, Antonio Costa, has indicated that leaders have agreed on the need to increase military capacity, with the focus on air defense, missiles, ammunition or military mobility. In addition, they have analyzed as “Mobilize private investment to develop and strengthen the defense industry “has added the Portuguese.
“We must prepare and respond together as Europeans. We must be stronger in defense. The industrial base of our defense must be strengthened,” said the German, To claim that the expense in this item must increase. While this debate is articulated as a first step, von der Leyen has called pragmatism, it stressed that there are duties to do, such as promoting competitiveness.
After a day in which the threat of tariffs of the US president, Donald Trump, has been one of the debate points of community leaders, von der Leyen has asserted that the EU “is prepared for a robust and constructive dialogue with the United States with the United States ” However, he has recognized “The potential challenges of this relationship “and has assured that the EU is” prepared to respond firmly. “
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