Top European Union officials unveiled plans on Tuesday to enhance collaboration within the continent's defense industry, citing the need for increased joint procurement of weapons among member countries. The European Commission, the EU's executive body, proposed allocating 1.5 billion euros ($1.63 billion) to incentivize collective purchases from European firms and foster the development of new technologies.
Margrethe Vestager, a vice president of the Commission, highlighted the necessity for boosting production capacity to meet growing demand in the defense sector. She emphasized the importance of overcoming national borders' fragmentation and promoting competition by encouraging EU member states to collaborate on defense procurement.
While acknowledging the allocated funds may seem insufficient, Vestager stressed their potential to create incentives for EU nations to work together in defense matters. The Commission also aims to integrate Ukraine into its plans, despite it not being an EU member, and explore options such as using profits from frozen assets to support Ukraine's defense industry.
The proposed measures include aiming to procure at least 40% of defense equipment collaboratively by 2030 and spending at least 50% of defense procurement budgets within the EU. Additionally, a pilot program resembling the U.S. Foreign Military Sales scheme is proposed to facilitate arms purchases from European manufacturers.
EU foreign policy chief Josep Borrell emphasized the need for cooperation and coordination in the absence of a centralized institution akin to the Pentagon. The proposals will require approval from EU member countries and the European Parliament.
The European defense industry association, ASD, expressed initial support for the proposals, highlighting the importance of speed and adequate financial resources for their implementation. The proposals will also be scrutinized by NATO to ensure they complement rather than duplicate the alliance's efforts in defense.
If approved, the 1.5 billion euro package will be allocated between 2025 and 2027, with ongoing discussions regarding broader support for a larger EU defense fund.
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