Europe ready for a “European Armament Programme”

by Francesco Matera

A powerful rearmament is what Europe sees on the not too distant horizon. The winds of war coming from Ukraine and the threat of a rock-solid Russia, capable of challenging the West, despite the heavy sanctions applied to it, are just some of the factors that push the Old Continent to have to seriously think about a different approach in foreign policy, providing for a common defense with the establishment of a Commissioner for Military Affairs. As said on "warning” comes not only from Russia and Chinese ambitions in the Mediterranean but also from the United States after the probable new president, Donald Trump, reminded NATO member countries of the need to commit 2 percent of their GDP to military spending.

Failing that, Trump himself invited Putin to do what he deemed most appropriate because non-compliant countries would not enjoy the American defensive umbrella. Even if Trump's unfortunate exit smacks of an electoral campaign gimmick, the fact nevertheless clearly emerges that it is necessary to remedy the gap institutional in community defense which, as a logical consequence, also provides for unidirectionality in the affairs of procurement military. This is due to the various challenges that the European Union already faces and that it could be forced to face alone to defend its strategic interests which often do not coincide with those of NATO (a purely defensive organization) nor with those of the Americans.

In this regard, the proposal for a dedicated plan from the European Commission and the High Representative for Foreign Affairs and Security for a new Industrial Strategy for European Defense is already ready. The proposal could be approved as early as the next meeting in March. The objective is to clarify a path that allows the European defense industrial and technological base to maximize its reaction readiness, considered crucial in the current geopolitical context.

In 2022, member states' military spending increased for the eighth consecutive year, reaching €240 billion. However, 78% of the war material purchased from the start of the war in Ukraine until June 2023 came from non-European suppliers, almost two-thirds of which came from the United States. Furthermore, the production of the 46 most urgently needed military goods is spread across 23 different Member States, highlighting the need for greater cohesion and collaboration.

The EU proposal seeks to address these challenges through three guiding principles: improvement, collaboration and European focus. This means rationalizing supplies through joint purchases, in line with positive experiences such as those relating to vaccines and gas, involving industrial actors and establishing a high-level European Defense Industry Group.

Furthermore, the proposal aims to identify programs of common interest to concentrate European efforts and funding, promoting the emergence of autonomous European defense capabilities, such as cyber defense and integrated air and missile defense systems. It is also proposed to strengthen the European Instrument for Joint Purchasing in order to increase the percentage of joint purchasing by 2030 and to standardize the standard of armament interoperability.

To support this transformation, the proposal provides for a new regulatory framework called European Armament Programme, which offers financial incentives to compliant Member States and tax breaks for joint purchasing. Furthermore, the gradual creation of a European Military Sales Mechanism is proposed to ensure an adequate and efficient supply of European equipment.

Significant funding is therefore needed, so the plan involves turning to the European Investment Bank and reforming existing instruments such as InvestEu to support defense objectives.

Furthermore, it is suggested to integrate defense needs into the structural funds of cohesion policy. Although some quantitative details are missing, the text is currently being evaluated and its fundamental structure seems destined to remain unchanged, given the convergence on the need to place defense and security as a priority for the European Union.

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Europe ready for a “European Armament Programme”