The European Union intends to free up hundreds of billions of euros for additional defense funding. This was reported by Bloomberg, citing sources.
This includes changing budget rules to free up national resources, potential joint financing, and redistribution of existing funds.
At the same time, Bloomberg writes, Europe faces two complex problems: its defense industry is underdeveloped and not ready for rapid rearmament, and its weapons stockpiles are practically empty due to support for Ukraine. At the same time, supporting local weapons manufacturers requires time and money, which are in short supply. This situation forces the EU to seek any available resources, the agency notes.
According to it, the defense plan of the head of the European Commission Ursula von der Leyen “will consist of three elements,” all of which are complex, and it is not yet clear to what extent they will be implemented. The talks will focus in particular on excluding defense spending from budget deficit calculations, sources said, and could amount to between 1% and 2% of national GDP over two to four years.
In addition, von der Leyen has floated the idea of possibly reusing unspent EU funds, including money raised for recovery from the COVID-19 pandemic, in closed discussions. The idea of invoking the European Stability Mechanism has also been floated, Bloomberg reported. However, this option remains difficult because it does not include countries outside the eurozone, such as Poland.