The EU has proposed a fund of 100 billion euros for cooperation in the defense industry
Kyiv • UNN
The EU plans to create a €100 billion defense fund for cooperation and production. Internal Market Commissioner Thierry Breton aims to reach the level of required military capabilities within two years.
European Commissioner for the Internal Market Thierry Breton has announced a proposal to create a €100 billion fund to stimulate EU defense production and cooperation between countries, companies and other stakeholders. The presentation of the European Defense Investment Program (EDIP) is scheduled for February 2024.
Politico writes and UNN reports.
Details
Thierry Breton, who is in charge of the European Commission's defense portfolio, has stated the need for a significant defense fund of 100 billion euros.
To make sure that the whole industry works more and more together, we need incentives. I think we need a huge defense fund to help accelerate, even probably 100 billion euros... (...) I am convinced that we will do it
He also added that EU leaders will discuss defense challenges at a summit in early February. The decision to allocate EU budget funds for the defense industry must be approved by the European Council.
On February 27, 2024, Thierry Breton is to present the European Defense Investment Program (EDIP), a money bank designed to increase joint arms purchases and put the EU on a military footing by increasing domestic production of weapons and ammunition.
Achieve the goal within 18 months
The EU's internal market chief also insists that the bloc will meet its target of producing one million artillery shells by spring, after last year's promise to deliver 1 million munitions to Ukraine by March.
According to Breton, "we are only the European Commission," but the official emphasized that it is "absolutely" possible to reach the target of producing shells by March or April.
Despite the caution expressed by EU chief diplomat Josep Borrell and national ministers such as German Defense Minister Boris Pistorius, Breton said that the Europeans "will honor our commitment until March or April.
But that's not enough, because we have to make sure that our forecasts are more or less in line with Russian production
He also noted his belief that "within the next 18 months to two years, we will be on a par with Russia.
Different amount of contributions among EU countries
Breton said his team was finalizing "a vision for the defense industry at the end of February," "which will be discussed at the next summit" scheduled for February 1.
German Chancellor Olaf Scholz said on Monday (January 7) that EU member states "need as precise an overview as possible on February 1 of what concrete contribution our European partners will make to support Ukraine this year.
The debate over the conclusions among EU leaders is likely to increase pressure on countries such as France, Italy, and Spain, which, according to publicly available information, have provided relatively little military goods to Ukraine.
According to the Kiel Institute, which tracks publicly announced military aid to Ukraine, last year Germany was the second largest donor after the United States with €17.1 billion, followed by the United Kingdom with €6.6 billion, and northern and eastern EU member states.
For comparison, France has so far allocated only €0.54 billion, Italy €0.69 billion, and Spain €0.34 billion.
At the same time, Russia has sharply increased its own munitions production and received thousands of missiles from its ally North Korea.
Amid concerns about the credibility of promises to Ukraine, Breton condemned officials for questioning the bloc's goals for munitions.
I am not happy when I see some defense ministers saying that we will not be able to deliver, this is not the kind of information you give when there is a war on your continent
Recall
The European Commission is preparing an alternative aid package for Ukraine in case the EU countries fail to approve a four-year, 50 billion euro support program for the country during the February 1 summit.
Also UNN reported that according to the Munich Institute for Economic Research Ifo, after the start of Russia's full-scale invasion of Ukraine in early 2022, EU exports to Russia fell to 37% of the pre-war level.
