In response to Russia’s invasion of Ukraine, the European Commission will present proposals on Tuesday to enhance the arms industry in the European Union. Thierry Breton, the European industry commissioner, will introduce measures to encourage EU countries to collectively procure more weapons from European companies and support these firms in expanding their production capabilities, as per EU officials.
Breton emphasized the need for a shift to “war economy mode” and stressed that the European defense industry must be willing to take risks with the support of the EU. He also pointed out the importance of Europe assuming greater responsibility for its security, irrespective of the outcomes of allies’ elections every four years.
As a result of Russia’s actions in Ukraine, numerous European nations have ramped up their defense spending. However, EU officials believe that individual country efforts are less effective and advocate for increased involvement of EU bodies in defense industrial policy.
Experts have noted that the war has highlighted the unpreparedness of the European industry to meet certain critical challenges, such as a sudden surge in demand for significant quantities of artillery ammunition.
Breton’s proposals include the establishment of a European equivalent of the U.S. Foreign Military Sales scheme, which assists other governments in purchasing from American arms companies. Another suggestion is to empower the EU to mandate European weapons firms to prioritize European orders during crises.
Approval from the EU’s 27 member states and the European Parliament will be necessary for the implementation of these proposals, as national governments have been hesitant to relinquish control over defense and military issues. NATO will closely review the proposals to ensure they complement rather than duplicate the alliance’s efforts.
Although Breton’s package is expected to allocate around 1.5 billion euros ($1.63 billion) in new funding until 2027, officials believe that the legal framework created could pave the way for more coordinated spending in the future, contingent on the EU’s willingness to allocate resources. Breton has advocated for a separate EU defense fund of 100 billion euros.
Commission officials are keen on involving Kyiv in the new initiatives aimed at enhancing joint procurement and production capacity, even though Ukraine is not an EU member. They view Ukraine as almost equivalent to a member state and are eager to engage with them on these projects.
Agreement on the proposals will likely take time due to the upcoming European Parliament elections and the appointment of a new European Commission. Internal disagreements within the current Commission foreshadow potential power struggles in the future, with differing opinions on the necessity of a dedicated defense commissioner role.
Regardless, the aim is to bolster the EU’s defense capabilities and ensure preparedness in the face of evolving security challenges. The proposed measures are a response to the changing geopolitical landscape and the need for Europe to strengthen its defense industry in light of external threats and uncertainties.
($1 = 0.9210 euros)
(Reporting by Andrew Gray; Editing by Tomasz Janowski)
