The European Commission has announced an unprecedented defence package for the EU to boost its arms industry, allowing the bloc to shift to "war economy mode" in response to Russia’s invasion of Ukraine.
This Tuesday, European Commissioner for the Internal Market, Thierry Breton, unveiled the European Defence Industrial Strategy in Brussels – an extensive project aimed at encouraging EU countries to buy more weapons together from European companies, and to help European firms increase production capacity.
At the presentation of the vast €1.5 billion package, Breton stressed that "to counter the return of high-intensity war on our border, we have decided to kick up a gear."
The commissioner had earlier underlined the need for the European Union “to change the paradigm and move into war economy mode. This also means that the European defence industry must take more risks, with our support.”
The war in Ukraine has forced Brussels to innovate, and the EU defence strategy presented by Breton borrows from some mechanisms already in place.
These include the bloc's Act in Support of Ammunition Production (ASAP), which according to Breton will swell the number of shells produced annually in the EU to two million in 2025 against a quarter of that figure when Russia invaded Ukraine in February 2022.
"We are doing it with artillery munitions, we must now be able to do it for all equipment necessary for our security," Breton said.
The Commission's project proposes favouring the common purchase of weapons made in the European Union.
Since the invasion of Ukraine, nearly 70 percent of arms bought by European nations and sent to Kyiv came from the United States.
We are adopting our first ever defence industrial strategy and proposes a new defence industry programme to enhance its readiness and security.
— European Commission (@EU_Commission) March 5, 2024
Press conference by Executive Vice-President @vestager, HR/VP @JosepBorrellF and Commissioner @ThierryBreton ↓ https://t.co/WQDCPdYDVb
Bracing for Trump’s return
A French former tech company CEO, Breton also said the possibility of another US presidential term for Donald Trump – who has questioned Washington's commitments to NATO – means Europe has to do more to protect itself.
"In the current geopolitical context, Europe must take greater responsibility for its own security, regardless of the outcome of our allies’ elections every four years,” Breton said.
In February, Donald Trump expressed his willingness to "encourage" Russia to attack any NATO allies perceived as not meeting their financial obligations, in a move that drew swift condemnation from US allies.
The White House promptly rebuked Trump's remarks, denouncing them as "appalling and unhinged," with a statement from the Biden administration emphasising the dangers posed by such rhetoric, asserting that endorsing invasions by aggressive regimes jeopardises American national security, global stability, and the domestic economy.
Jens Stoltenberg, the Secretary-General of NATO, joined the chorus of criticism of Trump's stance.
Stoltenberg reaffirmed NATO's unwavering commitment to defend all its allies, emphasising that any insinuation of wavering commitment undermines the collective security of NATO members, including the United States.
He underscored the crucial role of solidarity among allies in ensuring the safety of American and European soldiers, regardless of the outcome of presidential elections, expressing confidence in the enduring strength of the US-NATO alliance.
❝We should leave no room for miscalculation or misunderstanding in Moscow about our readiness.❞
— NoComment (@nocomment) February 14, 2024
Ahead of the NATO Ministers of Defence meeting, NATO Secretary General Jens Stoltenberg addressed Donald Trump’s comments on NATO. pic.twitter.com/lRLGcDTQ1o
United EU defence effort
Although Russia’s war in Ukraine has prompted many European countries to increase defence spending, EU officials argue that national efforts alone are less efficient and want EU bodies to play a greater role in defence industrial policy.
Analysts say the war has made clear that European industry was ill-prepared for some major challenges, such as a sudden surge in demand for large amounts of artillery ammunition.
Breton’s proposals include creating a European version of the US Foreign Military Sales scheme, under which the United States helps other governments to buy from US arms companies.
Another proposal would allow the EU to compel European weapons firms to prioritise European orders in times of crisis.
To become reality, Tuesday's proposals will need approval from the EU’s 27 national governments – which have often been reluctant to cede power on defence and military matters – and the European Parliament.
The proposals will also be studied closely by NATO, which has said it welcomes EU efforts to help European defence, but warned they must not duplicate or clash with the transatlantic alliance's work.
Finding the funds
Breton’s package includes some €1.5 billion in new money through to the end of 2027 – a modest sum in the world of large-scale defence procurement.
But officials say the package will create a legal framework that would allow much greater coordinated spending in years to come, if the EU is willing to stump up the cash.
Breton has called for a special EU fund of €100 billion for defence projects.
Commission officials say they want Kyiv to take part in the proposed new schemes to boost joint procurement and production capacity, even though Ukraine is not part of the EU.
Agreeing on the proposals will take some time, particularly as a new European Parliament will be elected in June, followed by the appointment of a new European Commission.
Disagreements within the current Commission give a foretaste of some of the power struggles ahead.
While Commission President Ursula von der Leyen has said she will create a post of defence commissioner if she serves a second term, Breton has argued there is no need for such a role.
"If the question is that of a Defence Industry Commissioner, it seems to me that we already have one,” he said.
