dpa
Brussels
European Union leaders gathered on Monday in Brussels are under increasing pressure to break the deadlock and agree on how to significantly bolster defence capabilities despite gloomy economic outlooks.
One of the main issues is how to finance the necessary multibillion-euro investments. After several crises, many European countries are short on money and faced with faltering economies.
Around €500 billion ($513 billion) would be required over the next 10 years for projects to enhance Europe’s air-defence system and secure the bloc’s Eastern land borders, according to the European Commission. German Chancellor Olaf Scholz was “quite optimistic” that the EU was getting ready to take decisions and “to overcome any obstacles,” he said as he arrived at the summit.
Possible solutions, such as joint borrowing at European level or the softening of the EU deficit limit, have failed so far to receive sufficient support also due to resistance from Berlin.
A compromise could be to finance more defence projects via the European Investment Bank (EIB).
The EU has struggled to ramp up arms production in recent years, despite Russia’s war against Ukraine adding urgency to the effort and military assistance for Kiev depleting domestic stocks.
The return of US President Donald Trump is adding pressure amid concerns over his interest in gaining control of Greenland, possibly fewer US soldiers in Europe and less support for Ukraine.
Berlin also aims for new rules for the joint development and procurement of defence equipment in the EU to efficiently bolster defence capabilities.
Scholz called for “less bureaucracy, more determination.” “Companies must be freed from all the legal rules that affect their cooperation,” Scholz said.
“Countries must be able to enter the purchasing processes of other countries without new purchasing procedures,” he said.
French President Emmanuel Macron said he was in favour of giving the EIB a bigger role in financing defence projects and stressed the importance of buying European-made arms.
The meeting in Brussels however is focussed on taking stock of the challenges, and no far-reaching decisions are expected before June.
NATO Secretary General Mark Rutte and British Prime Minister Keir Starmer are joining discussion on defence cooperation with the bloc.
European Union foreign policy chief Kaja Kallas called for closer ties with the United Kingdom, stressing cooperation on defence as the next logical step in relations with the former EU member.
Some EU members see cooperation with the UK on defence as problematic, with France in particular putting a brake on negotiations.