Breton proposes €100 billion fund for defense industrial cooperation – Euractiv

Internal Market Commissioner Thierry Breton on Tuesday (9 January) proposed a €100 billion fund to boost production in the EU’s defense industry and cooperation between countries, companies and other stakeholders.

His comments come as the EU executive proposes on February 27 the EU’s brand-new European Defense Industrial Strategy (EDIS) to strengthen the continent’s arms and ammunition production capacity while encouraging cross-border production and cooperation. It was served on schedule.

Breton, who is in charge of the European Commission’s defense industry portfolio, said on Tuesday 9 January that “incentives are needed for all industries to increasingly cooperate”.

“We think we need support, probably in the range of 100 billion euros, and even a huge defense fund to accelerate it,” Breton said at an event organized by Renew Europe, a liberal political group in the European Parliament. Stated.

“If four countries and different companies, including small and medium-sized enterprises, work together, as we did with the European Defense Fund (EDF), we can say that we can support you in advance of what you are trying to do,” Breton said. said. and further elaborated on his incentive ideas.

As Euractic reported last month, over the past few months the European defense industry, EU member states and other key stakeholders submitted ideas and advice on this strategy and responded to a Commission questionnaire late last year. Ta.

The European Commission has already provided coordinated funding for joint procurement on behalf of Ukraine through the European Investment Program through Joint Procurement (EDIRPA) and by investing in ammunition production lines under the Ammunition Production Support Act. It presents various schemes to help member countries and industries expand production (as soon as possible).

18 months until the match

The EU internal market chief also insisted that the EU would meet its goal of producing one million shells by spring, after EU member states pledged to donate one million rounds of ammunition to Ukraine by March last year. .

Breton warned that “we are only the European Commission” but stressed that it was “absolutely” possible to meet Shell’s targets by March or April.

Despite the caution expressed by ministers including EU chief diplomat Josep Borrell and German defense minister Boris Pistorius, Breton said European countries “will keep our commitments by March or April. ” he said.

“But that is not enough, because we need to make sure that our forecasts more or less match Russia’s output,” the EU internal market chief said, adding: “In the next 18 months to two years I am confident that this will happen,” he added. , we will be on par with Russia. ”

However, such large financial facilities are not available in the current EU budget and will likely rely on the support of private financing opportunities such as banks.

EU leaders reiterated their call at their December summit to “strengthen the role of the European Investment Bank Group in supporting European security and defence,” but the bank, which is governed by EU finance ministers, has so far It remains reluctant to provide funding. investment.

Details for February 1st

Brereton said his team is finalizing the “defense industry position towards the end of February” and “will be discussed at the next summit” scheduled for February 1.

German Chancellor Olaf Scholz said on Monday, January 7, that EU member states must on February 1 “at the latest provide as accurate an overview as possible of what concrete contributions European partners will make to support Ukraine this year.” We need to understand.”

According to public information, EU leaders will discuss the findings, which could increase pressure on countries such as France, Italy and Spain, which have so far contributed relatively little military supplies to Ukraine.

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