Commission: Defense joint procurement plan – € 200 billion budget increase

THE Commission presented the plan for joint procurement in its field defense Member States, as the Commission considers that there must be changes in the field of security due to the war in Ukraine.

According to the Athenian News Agency, the Commission stated that “the Russia’s unprovoked aggression against Ukraine has significant implications for European defensewhich leads to increased military spending by Member States “.

As a direct result of the Russian invasion of Ukraine, the member states announced raises to defense budgets them, in total by 200 billion euros in addition for the coming years. However, the Commission notes that these the increases come after years of substantial cuts and insufficient investment. From 1999 to 2021, EU combined defense spending increased by 20% compared to 66% for the US, 292% for Russia and 592% for China.

Land and sea defense

THE air and missile defense is one of the most pressure gaps. The Commission therefore proposes investments in drones and smaller drones with surveillance capabilities. The Commission proposes to Eurodrone Male Rpas developed, produced in cooperation with Germany, France, Italy and Spain. It also proposes upgrading multi-role fighter jets in the EU.

Still, in land highlighted the need to upgrade the existing stock of Main Battle Tanks and of Armored Combat Vehiclesas well as next-generation systems, in the light of the return of large-scale, high-intensity war in Europe and in particular a wide range of anti-tank and artillery systems.

Also in seathe further strengthening of the naval forces of the Member States remains crucial in the light of the increasingly controversial Black, Baltic and Mediterranean Seas, as well as the need to strengthen the display of power and strength, as well as denial of access and coastal defense. They need investments in frigates, submarines and patrol corvettes. In the medium and long term, ISR capabilities and the protection of maritime communication lines will benefit from high-quality interconnected vessels reinforced with unmanned platforms for surface and submarine control and electronic warfare.

In fact, at near futurethe Commission will create a joint defense procurement team to work with Member States. An EU short-term instrument to strengthen defense industrial capabilities through joint procurement will be proposed for rapid adoption, to help Member States fill the most urgent and critical gaps in a cooperative manner. The Commission is ready to commit EUR 500 million by EU budget for two years. This short-term instrument will pave the way for an EU framework for joint defense procurement. To this end, in the autumn of 2022, the Commission will propose Regulation on the European Defense Investment Program (EDIP). It will lay down the conditions for Member States to set up a European Defense Capabilities Consortium (EDCC). The idea is to exclude joint contracts from VAT, but also to convince the European Investment Bank to strengthen its support for the European defense industry.