The European Union's plan to rebuild its defense industry

After three decades of "peace dividends", the European defense industry has proven to be in a poor position to enable European Union (EU) countries to supply Ukraine with weapons systems and equipment. ammunition required.

On Tuesday March 5, the European Commission presented a reindustrialization plan intended to prevent a repeat of the situation in 2022 and 2023 where, according to it, 68% of purchases made by European states were from the United States.

Ukrainian soldiers mill around a tank during the visit of German Defense Minister Boris Pistorius and Danish Defense Minister Troels Lund Poulsen to a military site in Klietz, Germany, May 5, 2023 AP - Klaus-Dietmar Gabbert

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With our correspondent in Brussels

,

Pierre Benazet

For the Commission, Europeans must be able to acquire half of the necessary weapons from their own industry by 2030, with a comprehensive long-term industrial program.

In 2022, the United States spent 250 billion euros centrally, while for European states the amount amounted to 58 billion euros in a fragmented manner, since only 18% of defense investments are made in common.

The objective is to achieve 35% of public arms procurement carried out jointly in ten years.

“ 

The program we are proposing today already has 1.5 billion euros, which can be mobilized to support defense industries.

The ability to use the income generated by frozen Russian assets in Europe seems to us to be a very good idea to be able to use an amount that would allow us to increase this envelope.

Today, increasing our defense industrial base is an existential objective

 ,” explains Thierry Breton, European Commissioner responsible for Defense Industry.

Give the Twenty-Seven a clear vision of production chains within the EU

Among the projects mentioned by the European Commission is a fund to guarantee loans to manufacturers, in particular small and medium-sized businesses.

Likewise, the Commission proposes that the European Investment Bank facilitate access to financing for the defense sector.

There would also be funding for industrial sites which would have to be permanently maintained in a state of production of munitions or weapons systems.

Specific funding for European strategic reserves is also planned.

For the Commission, the idea is also to give each of the 27 governments a clear vision of the production chains for weapons systems in other EU countries.

Because the munitions crisis showed that arms purchases were partly made outside Europe because capitals are unaware of the capabilities present in other states.

The munitions and public procurement programs put in place since the start of the war run until mid-2025.

The Commission is counting on 1.5 billion euros needed to go until the end of 2027. This initial budget should produce a knock-on effect for decades to come, the only way, according to the Commission, for

European industry

to enable for the Union to achieve a truly autonomous defense.

Read alsoSweden's entry into the Atlantic Alliance strengthens NATO's defense strategy in the region

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