The EC proposes to create a European scheme for arms sales abroad, legislate the priority of European orders during a crisis and establish a special EU fund for defense projects.
The European Commission on Tuesday, March 5, will propose ways for the European Union to stimulate its defense industry to move into a “war economy mode” in response to Russia's invasion of Ukraine.
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Thierry Breton, the European commissioner for industry, will outline proposals that would encourage EU countries to make greater joint arms purchases from European companies and help defense firms increase production capacity.
“We need to change the paradigm and move to a war economy. This also means that the European defense industry must take more risks with our support,” Breton said.
Breton, the former CEO of a French technology company, also said the possibility of Donald Trump being elected as the new US president, who has questioned Washington's commitments to NATO, means Europe must do more to protect itself.
“In the current geopolitical context, Europe must take greater responsibility for its own security, regardless of the results of the elections of our allies every four years,” Breton said.
Russia's attack on Ukraine has prompted many European countries to increase defense spending. But EU officials argue that individual state efforts are less effective and want EU bodies to play a larger role in defense industrial policy.
The war in Ukraine clearly showed that European industry was ill-prepared for the sudden increase in demand for artillery ammunition, according to European analysts.
Breton's proposals include creating a European version of a foreign military sales scheme similar to that in place in the United States. Under this scheme, the United States helps other governments buy weapons from American companies.
Another proposal would allow the EU to force European arms companies to give priority to European orders during a crisis.
To become a reality, these proposals will need the approval of all 27 EU member states, which are usually reluctant to cede power in defense and military matters, and the European Parliament.
NATO said it would carefully study the proposals and welcomed EU efforts to strengthen European defense, but warned that proposed changes should not duplicate or conflict with the work of the transatlantic alliance.
Financing Breton's proposals
The implementation of the Breton package is expected to require funding of around 1.5 billion euros by the end of 2027 – a fairly modest amount in the world of large-scale defense procurement.
But according to the authors of the initiative, the package will create the necessary legal basis for the effective coordination of defense spending in the EU.
Breton also proposed creating a special EU fund of 100 billion euros for defense projects.
EC officials say they want Kyiv to take part in proposed new schemes to increase joint procurement and production capacity, even though Ukraine is not yet an EU member.
“We should treat Ukraine almost like a member of the EU,” an EU official told the publication on condition of anonymity.
Breton's proposals will probably not be agreed upon in the near future, given that the European Parliament elections will take place in June, after which a new composition of the European Commission will be appointed.
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