The Vice President of Industry of the European Commission, Stephane stayedhe considered this Saturday that the proposals raised by the Community Executive to increase defense spending up to 800,000 million euros are “sufficient At the moment “, although he did not rule out that there are other measures by the countries themselves.
The Brussels Rearme Plan consists of two pillars: one flexibility of fiscal rules that will allow countries to increase their defense expenditure 1.5% of additional GDP without accounting for the deficitwith which 650,000 million could be channeled in four years, and the SAF program of 150,000 million euros in credits financed with common debt To undertake Joint purchases of military material.
“The two tools are operational and I think they are enough for the moment,” said Séjourné upon arrival at the informal meeting of Ministers of Economy and Finance of the European Union in Warsaw, that this Saturday will focus on the possible ways to increase European spending in defense in order to be more autonomous in this area, especially given the turn of the new US administration.
The community vice president said, however, there could be additional initiativeseven that they do not come from the European Commission since Defense is a national competition and corresponds to the states to analyze different financial options outside the community institutions.
European Defense Mechanism
Precisely, the ministers discuss this Saturday a proposal prepared by the Study Center Bruegel by order of Poland, presidency on the turn of the EU, which raises, among other alternatives, the creation of a Intergovernmental Fund to which the states that wish, as well as extra -community partners, to also finance the Acquisition of strategic material for which the EU now depends largely on Washington, such as systems of military satellites.
The baptized as European Defense Mechanism It would be financed in capital markets with the support of the capital that would contribute its partnersin line with the operation of the current Rescue fund of the Eurozone, and could even be the owner of some of these strategic systems, according to the proposal.
The Polish Finance Minister Andrezj Domanski, acknowledged that there are different positions between the twenty -seven, so his goal is to achieve “solutions that work for all” and stressed that, despite the debate on the ‘Think Tank’ plan, their efforts will focus on the commission’s proposals, which must still be approved.
“They are an important step in the good direction. These 150,000 million euros in loans can make a difference in defense financing needs in Europe,” said the Polish head, whose country plans to present a proposal for commitment to the twenty -seven to approve this mechanism at the end of April.
Starting point
For his part, the Portuguese Minister of Finance, Joaquím Miranda, the only one with the Polish who made statements upon his arrival, considered that the proposals of the community executive are a “good starting point” and said that the twenty -seven must also “consider the possibility of creating new instruments” and how to articulate them with those already existing to find “the best solutions.”
Other countries consider that Bruegel’s proposal has “many positive aspects”, but cannot be implemented immediately, so they must be found Most short -term solutions And, for this, they advocate European financing for being a common good such as defense, European sources explain.
