New ideas on EU defense. This is the result of the actions of the Polish presidency
The European Union faces the need to think about its defense strategy – according to the report of the Bruegel Institute, prepared at the request of the Polish Presidency in the EU Council. The report proposes to create a European defense mechanism (EDM). The purpose of this initiative is to create a structure enabling joint purchases of armament and coordination of defense activities at European level.
EDM is to be an intergovernmental institution based on an international treaty, which can be joined by EU Member States, European Commission and allied countries from outside the EU, such as Ukraine, Great Britain and Norway. This structure allows you to avoid the requirement of unanimity, which often paralyzes EU decisions, and enables faster and more effective action.
European defense mechanism. What is this?
The main goal of EDM is to create a common European defense market by joint purchases of armament on a large scale, which will reduce costs due to the effect of scale, unify standards and reduce fragmentation of the European defense industry, joint ownership of strategic resources, such as military satellites or rocket technologies, which will deepen cooperation in the field of defense, as well the operation of defense resources with the NATO command and control structure.
Who will pay for it?
EDM is to be financed through membership fees, the amount of which will depend on the expenses of a given state for defense, its military assets and economic force. Decisions under EDM will be made by a qualified majority, weighted participation in subscription, which will allow more efficient decision making than in the case of unanimity.
Currently, the European defense industry is strongly crushed, which leads to inefficient and higher costs. For example, the United States provided Ukraine with one type of tanks, Europe – seven. This situation hinders logistics and increases operating costs.
Insufficient investments
In 2023, the revenues of 27 European arms companies from the world’s first hundred amounted to EUR 130 billion, which is half of what their American counterparts achieved. To match the potential of Russia, Europe needs a significant increase in investment in defense.
Current EU structures and initiatives are not enough for Europe to obtain key elements of a strategic advantage, such as a network of military satellites, a uniform command structure, fifth and sixth generation combat aircraft, sea and air logistics skills, as well as rocket and nuclear scares.
Member States’ reactions, German skepticism
The Minister of Finance of Poland, Andrzej Domański, emphasized that most EU finance ministers were interested in the Bruegel report and agreed as to the need for additional tools except for existing EU remitarization packages. He also pointed out that “the most burning issue in Europe” is financing security and defense.
The German finance minister Jörg Kukies expressed skepticism to the creation of new structures, suggesting that existing instruments should first be used, instead of creating new and complicated. Germany is also afraid of increasing EU debt for defense purposes.
