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“EU Faces Urgent Challenge to Secure Billions for Military Funding, Defense Chief Warns”

News NATO News
Er Mukesh Singh

“EU Faces Urgent Challenge to Secure Billions for Military Funding, Defense Chief Warns”

EU Must Secure Billions for Arms Within a Year, Defence Chief Warns

The EU’s defence chief has emphasized the urgent need to find billions in funding within the next year to enhance military capabilities, proposing innovative financing strategies to address immediate defense needs and counter future threats.

Andrius Kubilius, a prominent member of the European Parliament and former Prime Minister of Lithuania, has called for a “European big bang” in arms-buying to rapidly bolster the continent’s defense capabilities. Kubilius emphasized that the ongoing security challenges, particularly the threat from Russia, require immediate and substantial investment in military equipment.

In his remarks, Kubilius proposed that the European Union should take aggressive steps to secure the necessary arms, urging member states to pool resources and adopt a coordinated approach to defense procurement. He suggested that such a collective effort could help avoid the fragmentation of resources, allowing the EU to act swiftly and decisively in the face of emerging threats.

Kubilius further stressed that the EU must significantly increase its defense spending by 2030, with a focus on not only enhancing conventional military capabilities but also investing in new technologies and strategic deterrents. The former Lithuanian Prime Minister argued that European nations must work together to ensure they are fully prepared for any future conflicts, especially considering the ongoing instability in Eastern Europe.

As part of his call for action, Kubilius also highlighted the importance of innovation in financing these defense initiatives, proposing methods such as borrowing against future defense budgets or reallocating EU funds to accelerate arms purchases. This approach, he believes, would allow the EU to meet its defense goals without waiting for years of traditional budgetary cycles.

Andrius Kubilius, the former Prime Minister of Lithuania, has been appointed as the European Union’s first-ever Defence Commissioner. This significant move marks a milestone in the EU’s effort to strengthen its collective security and defense capabilities amid growing geopolitical tensions, especially with Russia’s aggression in Ukraine.

Kubilius, who served as Lithuania’s Prime Minister from 1999 to 2008, is a well-regarded political figure with extensive experience in European politics and security issues. In his new role, he will be tasked with leading the EU’s defense strategy, ensuring that member states collaborate on military preparedness, procurement, and response to external threats.

His appointment reflects the EU’s commitment to enhancing its defense infrastructure, a priority that has gained urgency following Russia’s invasion of Ukraine and the evolving security dynamics in Europe. Kubilius is expected to advocate for increased defense spending, greater coordination between EU countries, and innovative funding solutions to bolster military capabilities.

As the first-ever Defence Commissioner, Kubilius will have a crucial role in shaping the EU’s strategic defense policies, forging stronger ties with NATO, and ensuring that Europe remains resilient in the face of emerging global challenges.

By Lili Bayer and Andrew Gray

Lili Bayer and Andrew Gray have contributed their expertise in covering significant European political events, including the growing security concerns in the wake of Russia’s aggression in Ukraine and the evolving role of the European Union in defense. Their work often focuses on EU affairs, providing in-depth analysis and insight into key political developments across the continent. The appointment of Andrius Kubilius as the EU’s first Defence Commissioner marks a critical moment in European defense policy, an issue that has been at the forefront of discussions amidst rising tensions in Eastern Europe. As Kubilius takes on this pivotal role, the focus will shift to strengthening EU defense mechanisms and fostering greater cooperation among member states to address evolving geopolitical challenges.

BRUSSELS — Europe must urgently secure funding for hundreds of billions of euros in additional military spending within the next year to defend against potential threats from Russia by the end of the decade, according to Andrius Kubilius, the newly appointed European Union defence commissioner.

In an interview with Reuters, Kubilius, a former prime minister of Lithuania and the EU’s first-ever defence chief, emphasized the need for a major increase in defense procurement. He called for a “big bang” approach to both military spending and arms buying.

“We need to go big with our procurement,” Kubilius stated. “On the other side, we need to have big-bang finances.”

The EU is facing an escalating security threat, particularly in the wake of Russia’s actions in Ukraine. With this urgency in mind, Kubilius stressed the necessity of bold, rapid action to bolster Europe’s defense capabilities, highlighting the financial challenges ahead in securing the necessary resources. His remarks underline the European Commission’s commitment to developing new solutions for military investment in a time of heightened geopolitical instability.

Kubilius’s comments reflect a growing consensus among European leaders that the continent must urgently strengthen its defenses. The fear that Russia, under President Vladimir Putin, could target another EU country following Ukraine has heightened concerns. These worries are compounded by the possibility of Donald Trump’s return to the White House and the United States’ increasing focus on China. Many European officials fear that Washington may become less willing or able to assist with Europe’s security in the coming years, making it even more imperative for the EU to invest heavily in its own military capabilities.

There is broad agreement that Europe should spend more on defence, but EU countries have yet to agree on where to find the money.

Kubilius said a solution needed to be found in the next year, citing intelligence estimates – such as one by Germany’s spy chief – that Russia could be ready to attack a NATO country by the end of the decade at the latest.

“Everything needs to be done before or around 2030,” Kubilius emphasized. “We cannot expect President Putin to delay his plans until we are ready.” While Putin has stated that he does not intend to attack other European nations, such assurances are not reassuring to European leaders, especially given Russia’s similar claims about Ukraine before its 2022 invasion.

Kubilius stressed that Europe needs a comprehensive expansion of its military resources, from tanks and artillery to airlift and refueling capabilities. To meet these urgent needs, the European Commission estimates that an additional 500 billion euros will be required over the next decade.

One financing idea gaining traction is the issuance of EU defense bonds, which could be repaid from the EU budget. However, this proposal has faced opposition from fiscally conservative countries such as Germany and the Netherlands, complicating efforts to find a unified solution to Europe’s defense spending challenges.

Kubilius suggested the possibility of borrowing against future national defense expenditures, emphasizing the need for a “front-loading facility” that would be repaid from future defense spending. This approach could help rapidly address the immediate funding needs for military procurement.

Other financing options are also being considered. For instance, the European Stability Mechanism (ESM), which is the eurozone’s bailout fund, could be repurposed for defense spending. Additionally, funds from the EU’s coronavirus recovery program and regional development resources might be redirected to support defense projects.

Another proposal under discussion is the creation of a new defense fund, which would be established by a coalition of willing EU countries, as well as Norway and the UK. This fund would involve both paid-in and callable capital and could borrow money from the market for joint defense projects. It would be modeled on the ESM, using its capital to raise funds for large-scale defense initiatives.

Kubilius emphasized that creating a Special Purpose Vehicle (SPV) could help EU governments finance expensive defense projects without increasing their public debt. He drew a parallel to how the EU quickly mobilized hundreds of billions of euros during the COVID-19 crisis, urging a similar level of urgency in addressing what he called a “security pandemic” brought on by Russia’s actions.

One of Kubilius’s key objectives is to reduce fragmentation in the European defense market, where countries often procure defense systems individually from national suppliers. By aggregating demand through large joint contracts and fostering collaborative projects, he aims to streamline defense procurement across the EU.

A major priority for Kubilius will be ensuring that EU countries meet NATO’s capability targets swiftly. He plans to focus on large-scale initiatives like developing a European air defense shield. However, he acknowledged that the biggest challenge would be convincing member states to adopt a unified, collaborative approach to defense, rather than continuing to prioritize national interests and fragmented systems.

COURTESY: TRT World

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Works cited

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Mukesh Singh Profile He is an IITian, Electronics & Telecom Engineer and MBA in TQM with more than 15 years wide experience in Education sector, Quality Assurance & Software development . He is TQM expert and worked for numbers of Schools ,College and Universities to implement TQM in education sectors He is an author of “TQM in Practice” and member of “Quality circle forum of India”, Indian Institute of Quality, New Delhi & World Quality Congress . His thesis on TQM was published during world quality congress 2003 and he is also faculty member of Quality Institute of India ,New Delhi He is a Six Sigma Master Black Belt from CII. He worked in Raymond Ltd from 1999-2001 and joined Innodata Software Ltd in 2001 as a QA Engineer. He worked with the Dow Chemical Company (US MNC) for implementation of Quality Systems and Process Improvement for Software Industries & Automotive Industries. He worked with leading certification body like ICS, SGS, DNV,TUV & BVQI for Systems Certification & Consultancy and audited & consulted more than 1000 reputed organization for (ISO 9001/14001/18001/22000/TS16949,ISO 22001 & ISO 27001) and helped the supplier base of OEM's for improving the product quality, IT security and achieving customer satisfaction through implementation of effective systems. Faculty with his wide experience with more than 500 Industries (Like TCS, Indian Railways, ONGC, BPCL, HPCL, BSE( Gr Floor BOI Shareholdings), UTI, ONGC, Lexcite.com Ltd, eximkey.com, Penta Computing, Selectron Process Control, Mass-Tech, United Software Inc, Indrajit System, Reymount Commodities, PC Ware, ACI Laptop ,Elle Electricals, DAV Institutions etc), has helped the industry in implementing ISMS Risk Analysis, Asset Classification, BCP Planning, ISMS Implementation FMEA, Process Control using Statistical Techniques and Problem Solving approach making process improvements in various assignments. He has traveled to 25 countries around the world including US, Europe and worldwide regularly for corporate training and business purposes.
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