France and Germany confront € 150 billion to arm Europe

by Andrea
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The European Commission proposal for an investment of € 150 billion (R $ 940 billion) in the bloc’s defense sector became another point of friction between France and Germany. The plan aims to strengthen European military industry in the face of growing global threats and uncertainty about the support of the United States to the safety of the continent. However, the two main EU countries differ on who can benefit from resources – which, according to the Financial Timescan delay the plan.

German Chancellor Olaf Scholz argues that financing is extended to allies that are not part of the European Union, such as UK, Norway, Switzerland and Turkey. “It is very important for us that the projects supported by this initiative are open to partners outside the EU that work closely with us,” said Scholz during the bloc summit held last Thursday (7).

French President Emmanuel Macron, on the other hand, adopts a protectionist stance and argues that funds must be intended exclusively for European companies. “The expense should not be for new equipment ready for use that, once again, are of non -European origin,” said the French leader. Macron also suggested that each country review their purchase orders to prioritize block suppliers.

France and Germany confront € 150 billion to arm Europe

The dispute threatens to delay the European plan

According to a report published by Financial Timesthe divergence between the two countries can make it difficult to implement the financing package, which has broad political support, but still needs technical details before being approved by the Member States. According to FTEuropean diplomats fear that the impasse between Paris and Berlin manage the same obstacles that delayed the approval of the European Defense Industry Program, a € 1.5 billion fund created to support the military sector.

The European Commission has ten days to present a final text about the plan and already faces intense pressure to sew a consensus among the European capitals. “There is a lot of work to be done. This project did not exist a week ago and now it needs to be ready in less than two, ”an EU employee told FT. The fear is that, without clear alignment, the initiative is blocked before it even reaches the official vote.

Impact in the Ukraine War

In addition to reinforcing the EU military industry, the € 150 billion package aims to ensure immediate supplies of military equipment for Ukraine, which is still at war against Russia. According to Ursula Von Der Leyen, president of the European Commission, the funds will be directed to seven key areas, including air defense and antimysis, artillery and drones.

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The EU rotary presidency, currently under Poland command, will play a central role in search of a quick deal. The Polish government already faces challenges in dealing with the different positions within the block, and the size of the new package adds even more complexity to the debate. Although the measure can be approved without the unanimous support of the 27 Member States, France’s endorsement is considered essential to avoid future political disputes.

A European diplomat heard by the FT The dilemma summed up: “Right now, we need to solve it thinking about speed, not perfection. But if it was difficult to approve € 1.5 billion without French approval, how will we do the same with € 150 billion? ”. The European Commission, so far, has not officially commented on the dispute.

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