The defense is ready to invest in, especially in Russia’s nearby countries and big states. In the southern countries, terrorism is concerned, writes EU correspondent Hannele Muilu.
Hannele Muuleuu-Correspondent
11: 59 • Updated 12:00
BRUSSELS The EU summit approved the chairman of the Commission Ursula von der Leyenin Proposals for defense funding. The intention is to get EUR 800 billion on defense expenditure.
The EU needs to get out of the role of the defense under the role of the defense, to which it has drifted in years of peace by relying on US support.
The plan is largely based on the borrowing of Member States. The new financial instrument of EUR 150 billion offers loans for defense investments. The Commission takes off a loan from the capital market using the EU budget as collateral.
The loans are designed especially for common defense investments, but they can also be used to support Ukraine.
It is a good idea to take out a loan, especially for those for whom it is cheaper interest rates than the loan you receive from the market.
The EU debt rules are flexible so that due to defense investments, the country does not get into the financial monitoring class.
If the countries were to increase defense expenditure by 1.5 % of GDP, it would bring an investment of EUR 650 billion in four years.
However, debt must always be paid off. Some countries are already indebted. In the home country, it should be explained that now you have to pinch health care when you have to get air defense.
Even in debt rules, flexibility is not eternal. Over time, the Member State must strive to control indebtedness.
Especially in the Member States of the South, you would rather have subsidies for weapons purchases.
The recovery package taken to recover from Korona offered both a loan and support for Member States. The supports were good, the loans were not so much. The Commission still has EUR 93 billion remaining in the Commission.
Von der Leyen also suggests that the countries use the remaining regional development subsidies received from the EU for defense. This may encourage some defense investments, but many areas also need their support.
Investing in defense requires The fact that the country feels necessary to equip yourself in the event of a threat.
Far from the eastern border of the EU have threats other than Russian border states. They are afraid of terrorism.
These countries emphasize a broader examination of security, not so much iron to the border. Of course, defense investments can be made, for example, in cyber security.
In particular, Russia’s nearby countries and big states are ready to invest in defense.
Prime minister Petteri Orpo has emphasized that the countries of the front line, like Finland, must be on the EU’s defense reports. This, too, refers to non -government debt. Finland may also get a loan from the market as cheaply as the Commission.
Newly approved EU package However, there is only the beginning. The next heavy defense package is expected in a couple of weeks as the Commission publishes the so -called white book of the defense. It is intended to outline the defense for years to come.
The most revolutionary defense investment has been announced by Germany. It sets up a $ 500 billion fund for defense and infrastructure construction.
A clear commander to increase defense expenditure is the NATO Military Association.
The two percent time is behind. NATO countries are likely to invest in at least 3 % of GDP in the future.
US president Donald Trump In turn, threatens that countries do not help that do not pay what is imposed.