France and Germany clash over €150bn EU rearmament plan, FT
Photo: Olaf Scholz and Emmanuel Macron (collage RBC-Ukraine)
France and Germany have clashed during discussions about the EU's €150 billion rearmament plan. The dispute centered on whether non-EU countries should be included, accirding to the Financial Times.
Last week, the European Commission proposed raising €150 billion, which would be loaned to countries to increase their military production.
During the EU summit on Thursday, March 6, several leaders, including German Chancellor Olaf Scholz, stated that the initiative should be open to non-EU partners.
"It is very important to us that the projects that can be supported with this are open to . . . countries that are not part of the European Union but work closely together, such as Great Britain, Norway, Switzerland or Turkey," said Scholz.
However, French President Emmanuel Macron, who has long advocated for increased European autonomy and the promotion of domestic industrial production, stated that the funds should go toward European products, not "for new off-the-shelf kit that is once again non-European."
This dispute has already delayed the approval of the European Defense Industry Program, worth €1.5 billion, for a year, and there are concerns in Brussels that the situation may repeat itself.
"We’re at a stage where this just needs to be sorted in the name of speed, not perfection. But if there was reluctance to ram €1.5bn past French objections, how are we expected to do €150bn?" one European diplomat told the publication.
The European Commission has 10 days to develop a detailed proposal, which will need approval from member states.
Europe’s rearmament plan
Recall, the European Commission presented the ReArm Europe plan, worth €150 billion, to rearm Europe. At the summit on March 6, EU leaders discussed and approved the plan.
As European Commission President Ursula von der Leyen explained, the plan provides member states with fiscal space to invest in defense.
The initiative aims to mobilize €800 billion, including €150 billion in loans for defense needs. The funds will be used for producing air defense systems and modernizing defense infrastructure within EU member states.
