Introduction
“We are living in the most momentous and dangerous of times. I do not need to describe the grave nature of the threats that we face.”
On 4th of March the president of the European commission Ursula Von Der Layer used these words to open her speech about the International Security of Europe. Afterwards she added: “ The real question in front of us is whether Europe is prepared to act as decisively as the situation dictates. And whether Europe is ready and able to act with the speed and the ambition that is needed .. We are in an era of rearmament. And Europe is ready to massively boost its defence spending”.
In this way she outlined the new international priority of the European Union for the short and long term. Indeed she announced the ReArm Europe Plan which could mobilize close to EUR 800 billions for a safer and more resilient Europe.
Objects and Geopolitical Background
As it has been highlighted in the Munich Security Conference (MSC), Europe has missed several wake up calls through the years, ignoring complaints from US leaders about unfair burden-sharing. The main objective of ReArm Europe is to reduce the military dependency on the US in NATO defence spending. Indeed once the Berlin Wall fell in 1989 EU countries have changed progressively their percentage of the GDP used for Defence spending from nearby 3.5% to 1.6%. However in the last decade the trend of the EU has begun to slowly reverse with investment increasing from 150 000 to 300 000 billion. Moreover, considering the Military Spending Worldwide 2023, an investment of 800 Billions could potentially narrow the gap between EU and US.
| Country | Military Spending (Billion $) | % of GDP |
| United States | 916.0 | 3.4% |
| China | 296.0 | 1.7% |
| Russia | 109.0 | 5.9% |
| India | 83.6 | 2.4% |
| Saudi Arabia | 75.8 | 7.1% |
| United Kingdom | 74.9 | 2.3% |
| Germany | 66.8 | 1.5% |
| Ukraine | 64.8 | 37.0% |
| France | 61.3 | 2.1% |
Source: https://www.statista.com/statistics/262742/countries-with-the-highest-military-spending/
Where will the money come from?
On the 20th and 21th of March the summit of the Council Of European Union (CoE), attended by all the heads of government took place in order to discuss issues such as : Ukraine, the Middle East, competitiveness, European defence, the next MFF ( the current EU long term budget ), migration, oceans, multilateralism and the Western Balkans. The discussion on defence started with two new documents unveiled by the European Commission that provide more details of the ReArm Europe plan.
The first document is called White paper for European Defence – Readiness 2030, aimed to be implemented by 2030. The plan is based on several key sections.
The first part proposes to unleash the use of public funding in defence at national level. In fact, the Commission will activate a 4 years national escape clause of the Stability and Growth Pact. It will allow Member States to increase significantly their defence expenditures without triggering the Excessive Deficit Procedure. Therefore, countries would have different Debt rules if they are spending on Military defence. Whether every country will increase their GDP by 1.5%, the European Commission has predicted that 650 Billions of euros could be mobilized to boost the European defence system.
On the other hand the second point will work on the international level which is presented by the second unveiled document called SAFE program. It will provide 150 Billions of loans to Member States for defence investment. However the Commission has clarified 2 conditions to have access to these funds: Firstly, the joint purchases in order to reduce costs, decrease fragmentation, increase interoperability. Secondly, at least 65% of the components of these military products have to be made in an EU country, in Ukraine or in one of the states of the European Economic Area. This condition is aimed to strengthen the European defence industry and increase cooperation between the states of the Union. In fact, today only 22% of EU countries’ military purchases are “made in Europe” and only 18% come through joint procurement, while the goal set out by the Commission in Readiness2030 is to reach 40% by 2030. In addition the commissioner claimed the following: “with this equipment Member States can massively step up their support to Ukraine. So, immediate military equipment for Ukraine”.
The third point consists in using the power of the EU budget, indeed the commission has announced the additional possibility of Member States to use the Cohesion Policy Programmes to increase defence spending. The Cohesion Policy Programmes provides special care and investment tools to territories to address specific issues such as : job creation, business competitiveness, economic growth, sustainable development and improvements to citizens’quality of life.
The fourth and fifth sections aim at mobilising private capital by accelerating the Savings and Investment Union and through the European Investment Bank.
Criticisms
Concerning the theme of Defence and Security, ASSEDEL wants to remind that the European Union does not have exclusive competence in this area. Actually this topic is a competence predominantly of the member states of the EU. On the other hand, since 2016, when the Lisbon Treaty has been passed, the European country has agreed on the idea that a common security policy could be more reliable and effective to face the global crisis. Therefore, the European commission is currently acting in order to supply effective tools to the member states, enable them to address this new geopolitical emergency.
ASSEDEL questions whether these measures in ReArm Europe/ Readiness 2030, proposed by the Commission and passed either by European Parliament EP and by European council CoE can truly address the EU’s most pressing issue: Fragmentation. Indeed the European Union is composed by 27 countries, each one with its own defence industrial sector that has been severely weakened since the fall of Berlin’s wall. Unfortunately the increase in military budgets that this reform aims to facilitate will still be managed in the majority at the national level because 650 Billion of the 800 Billion will be provided by the escape clause of the Growth and Stability Pact. Therefore each government will be allowed to spend an additional 1.5% of their GDP in defence financing the creation of different types of arms and tanks, leading to a deeper fragmentation.
Moreover ASSEDEL would like to clarify the definitions of Defence and Security. In fact the White paper for European Defence – Readiness 2030, elaborated by the Commission, seems to miss out any declination of Internal Security. Security is more than just military spending. True security demands a broader understanding, encompassing robust economic foundations, resilient infrastructure, reliable healthcare systems, and effective public services. Europe’s collective strength and its ability to project authority externally depends fundamentally on unity, economic resilience, and social stability. Therefore, increasing military expenditure while cutting public services and weakening worker protections risks fuelling internal social conflict precisely when cohesion is most needed.
External strength can never be achieved through internal fragmentation.
Conclusion
ASSEDEL acknowledges the importance of standing up for a stronger and more independent European Union in the light of both internal and external Defence/Security within the new multipolar world.
Therefore the solution may not be financing rearmament at national level. On the contrary, efforts should focus on creating a more reliable economic, social and military interoperability and coordination of the European Union. Consequently we would have an European Union able either to have deterrence against authoritarian regimes and to have a bigger voice to spread its foundation principles: Peace ,Freedom, Democracy, Equality and the Rule of Law.
SOURCES
https://ec.europa.eu/commission/presscorner/detail/en/ip_25_793
https://ec.europa.eu/commission/presscorner/detail/sv/statement_25_673
https://www.socialeurope.eu/europes-military-build-up-will-social-spending-be-sacrificed