The European Commission will on Tuesday, the 5th of March, propose ways for the European Union (EU) to stimulate its arms industry to shift to a “war economy mode” in response to Russia’s invasion of Ukraine, as European Industry Commissioner Thierry Breton will outline proposals to encourage EU countries to buy more weapons from European companies and help them increase production capacity, citing EU officials, reports Reuters.
Breton, presenting the package, said that “we need a paradigm shift to a war economy. This also means that the European defence industry, with our support, has to take more risks”.
In the context of a possible next US presidency held by Donald Trump, who has questioned Washington’s commitment to NATO, Breton has also urged Europe
to take more responsibility for its own security in the light of the changing geopolitical situation.
Russia’s war in Ukraine has prompted many European countries to increase defence spending, but EU officials want EU bodies to play a greater role in the defence industry’s policy, as national efforts alone are less effective.
Analysts say the war clearly showed that European industry was ill-prepared for a number of major challenges, such as the sudden surge in demand for large quantities of artillery ammunition.
Breton’s proposals include the creation of a European version of the US Foreign Military Sales scheme. Another proposal would allow the EU to force European arms manufacturers in times of crisis to give preference to European orders.
The Breton’s package, which would provide 1.5 billion euros by 2027, paves the way for greater coordination of EU defence spending. Although it is a modest sum, it would establish a legal framework for future investment, officials has said.
Breton has also called for the creation of a dedicated EU fund of 100 billion euros for defence projects.
To be adopted, the proposals will need to be approved by the EU’s 27 member governments, which are often reluctant to give up powers on defence and military matters, as well as by the European Parliament.
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