European Union - Von der Leyen wants to spend 500 billion on defense
To protect the EU efficiently from threats from countries like China or Russia in the next decade, the European Commission estimates that additional investments of around 500 billion Euro will be needed, Commission President Ursula von der Leyen stated according to participants at the EU summit.
The share of military and defense spending in Russia's Gross Domestic Product was recently estimated by her to be over 7 percent. In Germany and many other EU countries, it is currently only around 2 percent or even significantly lower.
As a possible financing option for the medium-term funding of the necessary investments through the EU, von der Leyen mentioned, according to reports, an increase in national contributions to the EU budget or so-called own resources, including customs duties on imports into the EU and the EU plastic tax.
However, Berlin, among others, has so far rejected
If the member states wanted to make large investments in the short term, a loan could also be an option, but this would then have to be repaid via national contributions and own resources. The decision would have to be made by the member states, von der Leyen stated according to reports. For example, the federal government has so far strictly rejected a common EU debt for defense projects.
On the other hand, there are countries like Poland and the Baltic states. They can well imagine borrowing EU credits for example for better securing their borders with Russia and Belarus.
In principle, von der Leyen stated according to reports, security and defense are common public goods. The costs for providing security and defense are not greater than the benefit.
- At the EU summit, Ursula von der Leyen highlighted that the EU needs around 500 billion Euro to effectively counter threats from nations such as China and Russia in the upcoming decade.
- The European Commission President pointed out that Russia's military and defense spending, recently estimated by her, is over 7% of their Gross Domestic Product.
- As a potential funding source for these investments, von der Leyen suggested increasing national contributions to the EU budget or exploring own resources like customs duties and the EU plastic tax.
- However, Germany and others have rejected so far the concept of a common EU debt for defense projects, as suggested by von der Leyen.
- Countries like Poland and the Baltic states are considering borrowing EU credits to enhance their border security with Russia and Belarus.
- according to von der Leyen's reports, security and defense are considered common public goods, with the costs of provision being equivalent to the benefits.
