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The European Union’s defense industry might see an infusion of €150 billion, sparking a fresh debate between France and Germany. This latest chapter in their long-standing tussle surrounds whether the rearmament initiative should involve countries outside the EU.
Prodded by the looming threats from former U.S. President Donald Trump about ending years of American protection, Europe has committed to significantly bolstering defense spending and revamping its domestic military capabilities, which have weakened since the Cold War era.
Recently, the European Commission unveiled plans to raise €150 billion, to be loaned to EU capitals for ramping up their military manufacturing. While the overarching idea has political backing, discussions continue intensely over whether this fund should extend to arms made outside the EU.
At a recent EU summit, leaders like German Chancellor Olaf Scholz championed the inclusion of like-minded non-EU partners in this initiative. “It’s crucial for us that these projects are available to countries outside the European Union but who work closely with us, such as the UK, Norway, Switzerland, or Turkey,” Scholz remarked.
Contrarily, French President Emmanuel Macron, a staunch advocate for European self-reliance and industrial growth, countered, “Our spending shouldn’t go towards non-European off-the-shelf solutions.”
Addressing Europe’s critical gaps—spanning air defense, long-range strikes, and intelligence—Macron explained, “Our approach should focus on tapping into the best talent and businesses within Europe.” He emphasized that EU nations might need to revisit their orders to see if European suppliers could be prioritized.
Diplomats in Brussels fear that this €150 billion endeavor may hit a similar snag as the European Defence Industry Programme (EDIP) did—a €1.5 billion fund aimed at defense grants. Progress stalled last winter when France insisted on capping the portion for non-EU components and demanded a ban on third-country protected IP products.
Top commission officials, who are working intensely on the detailed proposal expected in ten days, are being urged to ensure close cooperation with Paris, Berlin, and other capitals to avoid roadblocks when the proposal seeks member states’ approval.
“There’s a lot to finalize. It wasn’t on the table last week and now needs completion in a fortnight,” an EU official noted. “We’ll see compromises along the way.”
According to Commission President Ursula von der Leyen, these loans focus on seven key areas, including air and missile defense, artillery, and drones. “These will allow member states to pool their demand, make collective purchases, and even supply immediate military aid to Ukraine,” she explained.
With Poland currently presiding over the EU’s ministerial meetings as part of its rotating presidency, it’s tasked with facilitating swift consensus building. The initiative only needs a majority vote among the 27 EU member states to pass. Still, gaining France’s approval is deemed crucial, even if France could technically be outvoted, as seen with the EDIP.
“We’re at a juncture where speed takes precedence over perfection,” expressed an EU diplomat involved in the talks. “But if the resistance was strong against pushing €1.5 billion past France, how can we expect to push through €150 billion?”
The commission chose not to provide any comments.
