EU rearmament slowed by dispute between France and Germany - Financial Times
The allocation of 150 billion euros for the EU’s defense industry has become a new flashpoint in a long-standing dispute between France and Germany over Europe’s rearmament program.
This is reported by the Financial Times, Censor.NET reports with reference to ZN.ua.
Last week, the European Commission proposed raising 150 billion euros to be lent to EU capitals to boost defense production. While the idea has received unanimous political support, the details are still being worked out, including active lobbying on whether the funds could be spent on weapons produced outside the EU.
During a summit of European leaders on March 6, several heads of state, including German Chancellor Olaf Scholz, said the initiative should be open to like-minded partners who are not EU members.
"It is very important for us that the projects that can be supported under this initiative are open to countries that are not members of the European Union but work closely with it, such as the United Kingdom, Norway, Switzerland, or Turkey," Scholz said.
However, French President Emmanuel Macron, who has long advocated for greater European autonomy and the promotion of domestic industrial production, has said that "expenditure should not be spent on new off-the-shelf kits that are once again non-European."
Regarding the gaps in critical capabilities for Europe — including air defense, long-range strikes, and reconnaissance, among others — "the method is to identify the best businessmen and companies that we have," the president added. Macron also said that each EU member state would be asked to "review the orders to see if European orders can be prioritized."
Diplomats in Brussels are concerned that the €150 billion initiative will be thwarted by the same argument that has delayed a deal on the European Defence Industrial Programme, a €1.5 billion fund of defence grants, for more than a year. Efforts to implement the initiative stalled this winter after Paris demanded a cap on the amount of money that could be spent on components from outside the EU and a ban on products with intellectual property protection from third countries.
Senior European Commission officials, tasked with preparing a detailed proposal within the next ten days, have been urged to work closely with Paris, Berlin, and other EU capitals to ensure the initiative is not blocked when it comes up for approval.
European Commission President Ursula von der Leyen said the loans, which will target seven key areas, including air and missile defence, artillery and drones, will "help member states pool demand and buy together" and ensure "the immediate provision of military equipment to Ukraine."
The Polish government, which currently holds the rotating EU presidency and is tasked with chairing the bloc’s ministerial meetings, will be under pressure to conclude a deal as quickly as possible. The initiative could be approved by a majority of the 27 EU countries, but France’s participation is seen as essential.
"We are at a stage where this needs to be decided for the sake of speed, not perfection. But if it was difficult to push through €1.5 billion because of French objections, how should we do it with €150 billion?" said an EU diplomat involved in the negotiations.
