In response to Russia’s invasion of Ukraine, the European Commission is set to propose measures aimed at bolstering the European Union’s arms industry and facilitating a shift to “war economy mode.” Thierry Breton, the European industry commissioner, will present strategies to encourage EU member states to collectively procure more weapons from European companies and support the expansion of production capacity.
Breton emphasized the need to alter the existing paradigm and transition to a war economy mode. “This also means that the European defence industry must take more risks, with our support,” previewed Breton as he outlined the upcoming package.
The proposals seek to address the inefficiency of purely national defense efforts and advocate for a more significant role for EU bodies in defense industrial policy. Breton’s package includes creating a European equivalent to the U.S. Foreign Military Sales scheme, which assists other governments in buying from U.S. arms companies. Additionally, there’s a proposal to empower the EU to mandate European weapons firms to prioritize European orders during crises.
The escalating tensions globally, including the possibility of another U.S. presidential term for Donald Trump, have led European officials to stress the importance of the EU taking greater responsibility for its own security, independent of allies’ elections every four years.
The EU’s response to Russia’s war in Ukraine has prompted increased defense spending by several member states. Breton’s proposals, totaling around 1.5 billion euros ($1.63 billion) through 2027, are seen as a starting point, with the potential for more coordinated spending in the future if the EU commits additional funds. Breton has called for a dedicated EU fund of 100 billion euros for defense projects.
The proposals face a challenging path to approval, requiring consensus from the EU’s 27 national governments and the European Parliament. NATO, while welcoming EU efforts to enhance European defense, has cautioned against duplication or conflicts with the alliance’s work.
Breton’s package, set to be officially unveiled on Tuesday, will be closely watched as it outlines a legal framework for coordinated defense spending and efforts to strengthen the EU’s defense capabilities.
