In Brief: Will the European Union’s New Loan Instrument Be Effective in Boosting Defense Capabilities? - War on the Rocks

In Brief: Will the European Union’s New Loan Instrument Be Effective in Boosting Defense Capabilities? - War on the Rocks

A lot happens every day. Alliances shift, leaders change, and conflicts erupt. With In Brief, we’ll help you make sense of it all. Each week, experts will

EU mulls new defence funding mechanism to boost military readiness

Existing EU defence instruments lack the scale and incentives needed to close capability gaps and respond to growing security challenges as the US steps back from its traditional role in European defence, according to a policy paper by think tank Bruegel, set to be discussed this week in Warsaw.

Over the weekend, a new defence finance model will be outlined in Warsaw that could radically transform the logic of EU defence financing: arms bought on a joint loan, EU ownership, shared decision-making. The European Defence Mechanism (EDM) promises cheapness, efficiency and strategic autonomy at the same time — the only question is whether Member States are really ready to relinquish the prerogatives of their national defence industries. Prop…

Three Trajectories for Defence Spending in the EU and Their Consequences for the European Industry and Capabilities

In Europe, status quo is no longer acceptable or even possible with regard to the evolution of international relations. Recent years have been marked by a wake-up call underlying the underinvestment in defence. Restoring a credible deterrence requires higher military expenditures. This policy brief looks at three scenarios based on trajectories of military expenditures in Europe and the corresponding role of the European Union.The industrial bas…