European Commission to propose ways to stimulate defense industry to EU countries
Photo: The European Commission will offer EU countries ways to stimulate the defense industry (Getty Images)
The European Commission will propose a plan to EU countries today, on March 5th, to stimulate their military industry so that it can quickly transition to a "military economy" in response to Russia's invasion of Ukraine, informs Reuters.
According to EU officials, Thierry Breton, the European Commissioner for Industry, will present proposals encouraging EU countries to buy more weapons from European companies and assist these firms in expanding their production capabilities.
"We need to change the paradigm and move into war economy mode. This also means that the European defense industry must take more risks, with our support," said Breton.
Breton's proposals include the creation of a European version of the US scheme for exporting military technology abroad. Another proposal aims to empower the EU to compel European arms companies to prioritize European orders during crises and acute production shortages.
For these proposals to become a reality, they require approval from the 27 national governments of the EU, which often reluctantly yield authority in defense and military matters, as well as the European Parliament. The proposals will also be carefully examined by NATO.
Breton's package is expected to include around 1.5 billion euros in new funds for arms procurement by the end of 2027. The package is anticipated to create a legal framework that will significantly enhance the coordination of expenditures in the coming years.
In the European Commission, there seems to be a desire for Ukraine to participate in the proposed new schemes for increasing joint procurement and production capacities.
"Our mission here is to treat Ukraine as almost equivalent to a member state," said one official who wished to remain anonymous.
Increase in weapon production in Europe
It was previously reported that the European Commission is developing a strategy for the development of the defense industry, taking into account the experience of using taxpayer funds to increase the production of COVID-19 vaccines and joint procurement of gas.
Additionally, the largest defense company in Britain, BAE Systems, was able to double its productivity, but plans to increase this figure eightfold.
German Chancellor Olaf Scholz has called on European partners to significantly increase weapon production.
