Brussels (Brussels Morning Newspaper) – European Commissioner for Defence and Space Andrius Kubilius said that the European Union is not yet ready to issue Eurobonds to increase much-needed defence capabilities to deter any potential military aggression against the EU,
In an interview with Euronews, he said:
“Eurobonds means that the European Union will have a bigger debt, which will need to be serviced again by all the member states, and now we have in some ways a challenge on how to repay the existing debt.”
“Preparation to discuss the next Multiannual Financial Framework (long-term EU budget) exactly shows that if we shall not find another solution, then quite a big part of the next MFF will be spent to repay pandemic debt,”
He also said.
EU Commissioner said he expects member nations to use the instruments and options already offered under the “rearm Europe” plan – now rebranded as ‘Readiness 2030.’
“Whatever instrument you are using, loans or bonds (grants), at the end somebody will need to pay those amounts of money, so that’s why we should not go for bonds before we shall get those answers,”
The Commissioner asserted.
How much will EU nations spend on defence by 2030?
“For the next four years, in some kind of idealistic scenario, member states will start to spend 3.5% of GDP, so it will be €2.4 trillion spent on defence. The question is: will it cover all the needs, or we shall need to have additional funding?”
He stated, saying that they expect to have a clear idea of what the actual needs are by June.
Kubilius expressed that the European industry is currently requiring much more European investment to expand the bloc’s industry as a strategic investment.
“That’s why we have those very clear requirements,”
He stressed.
“We want to incentivise member states to spend more money on European production, with possibilities to have partnership agreements with other countries like Great Britain, Canada, which would then bring those countries up to the same level as European countries,”
The Lithuanian commissioner stated.
The defence commissioner said that there is indeed a need for additional spending on preparedness, climate change and so on, but that it should be done in a separate way from defence spending.
“We need to fight against climate change. We need to fight for social protection, things which are also very important, but let’s do job by job. Defence is defence,”
Kubilius stated.
“In order to deter the possibility of aggression, we need to produce real weapons, but again, it should not be in some way viewed as some kind of competition with other tasks,”
He said.
