EU plans major defense investment despite German election impact
The European Commission plans to propose methods to fund EU defense and further support Ukraine. It plans to allocate up to 500 billion euros for this purpose. Decisions will be made after the elections in Germany.
The European Union is preparing to make significant investments in defense and support for Ukraine. In March, the European Commission will present funding proposals for these actions.
However, funding decisions will depend on the outcome of the German elections. Berlin has so far opposed joint debt for defense purposes, but a "European financial package" is possible after the elections.
Brussels' plan to raise funds: Several options available
In Brussels, 93 billion euros are considered for using unused Recovery Fund loans.
The European Commission is also considering reallocating funds within the current EU budget. The EC spokesperson, Maciej Berestecki, mentioned redirecting some funds from cohesion policy to defense. Investments could focus on dual-use infrastructure.
An option under consideration is creating an intergovernmental financial instrument for defense. Minister Radosław Sikorski mentioned establishing a new bank for rearmament modeled after the European Bank for Reconstruction and Development.
The head of the EC, Ursula von der Leyen, announced a loosening of fiscal rules. This will allow EU countries to increase defense budgets without penalties for excessive deficits, a key step in the context of rising security expenditures.
