Latest news with #Readiness2030
Euronews
6 days ago
- Business
- Euronews
EU Commission's defence loan scheme tapped by 20 member states
Twenty member states have flagged their interest in using loans issued by the European Commission to fund defence projects for an estimated total of over €100 billion, Andrius Kubilius revealed on Thursday. The Commissioner for Defence and Space said on X that he is "impressed to hear that already 20 member states will request the loans". "More than €100 billion will be requested to ramp up European defence," he added. The Commission's loan programme, dubbed SAFE, is a key plank of the 'Readiness 2030' proposal that aims to see hundreds of billions of euros invested into defence across the EU before the end of the decade. The EU's executive, which has a better credit rating than many member states, had planned to raise up to €150 billion on the markets through the scheme for member states to finance defence acquisitions together. Member states have until 29 July to officially put in a request for financing. The first disbursements are expected early next year. Kubilius did not mention which member states have already notified the Commission of their intention to make use of the scheme, but several had already publicly made their interest known, like Latvia. An additional advantage of using SAFE is that member states will not have to pay Value Added Tax (VAT) on the purchases. This is a developing story. Check back later for updates.
Hamilton Spectator
08-07-2025
- Business
- Hamilton Spectator
The EU presidency says Europe must rearm within 5 years. It's unclear how that could be done.
BRUSSELS (AP) — Russia could pose a credible security threat to the European Union by the end of the decade and defense industries in Europe and Ukraine must be ramped up within five years in preparation, Danish Prime Minister Mette Frederiksen warned on Tuesday. In a speech to the European Parliament marking the launch of Denmark's six-month term as holder of the EU presidency , Frederiksen lamented that 'cutting our defense spending in the past 30 years was a huge mistake.' European officials have warned that President Vladimir Putin could soon try to test NATO's Article 5 security guarantee — the pledge that an attack on any one ally would be met with a collective response from all 32. Most of the allies are EU countries. Russia has been accused of acts of sabotage, cyberattacks and fake news campaigns – largely to weaken European support for Ukraine – and while Europe is not at war, it is not at peace either, NATO Secretary-General Mark Rutte has said. 'Strengthening Europe's defense industry is an absolute top priority, and we have to be able to defend ourselves by 2030 at the latest,' Frederiksen told EU lawmakers in Strasbourg, France. 'Never, ever should we allow Europe to be put in a position again where we cannot defend ourselves.' Many European leaders insist they have heard the Trump administration's warning that American security priorities now lie elsewhere – in the Middle East and the Indo-Pacific – but Europe's effort to arm is moving only slowly. When NATO's ambitions are not enough At a key summit last month, NATO leaders endorsed a statement saying: 'Allies commit to invest 5% of GDP annually on core defense requirements as well as defense- and security-related spending by 2035 to ensure our individual and collective obligations.' That historic pledge will require them to spend tens of billions of euros (dollars) more over the coming decade, not five years. Spain – NATO's lowest spender with 1.28% of GDP last year – quickly branded the target 'unreasonable.' Belgium has cast doubt over whether it will make the grade. Slovenia is considering a referendum. Heavyweights France and Italy are mired in economic woes and will struggle to get there too. Money spent on military support to Ukraine can now be included in NATO's defense calculations, but even that will not hike the GDP military spend by much. The EU's Readiness 2030 plan With the threat of Russian aggression in mind, the EU's executive branch has come up with a security plan . It hinges on a 150-billion-euro ($176 billion) loan program that member countries, Ukraine and outsiders like Britain could dip into. It aims to fill gaps that the U.S. might leave. Spending priorities for joint purchase include air and missile defense systems, artillery, ammunition, drones, equipment for use in cyber and electronic warfare, and 'strategic enablers' like air-to-air refueling and transport. On Tuesday, 15 EU countries were permitted to take advantage of another measure — a 'national escape clause' — to allow them to spend more on defense without breaking the bloc's debt rules. Beefing up Ukraine 's defense industry is also a pillar. The country produces arms and ammunition faster and more cheaply than its EU partners. Kyiv estimates that 40% more of its industrial capacity could be exploited if Europe were to invest. Still, ambition is one thing, and the reality another. 'Things are not moving fast enough to be able to defend ourselves in 5 years,' Danish Defense Minister Troels Lund Poulsen told reporters last week. 'It's a huge, huge challenge to reach that goal.' On the need to take risks A big part of the problem is that governments and the defense industry are stuck in old ways of thinking and neither wants to take a risk, even with Europe's biggest land war in many decades still raging in its fourth year. 'You cannot expect industry to invest in production capacity if you don't have long-term orders,' said Joachim Finkielman, the director of Danish Defense and Security Industries. 'If you need to build new factories, if you need to engage a larger workforce, you need to make sure that you have that,' he told The Associated Press on Friday. Demand for 155mm artillery shells is a typical example, Finkielman said. 'When you see the kinds of orders that have been placed around Europe, it is two to three years out in time,' he said, while industry needs five to 10 years' worth of orders to take a chance. Finkielman said that if governments and industries in Britain, France, Germany and Italy start to move, 'the rest will follow.' Error! Sorry, there was an error processing your request. There was a problem with the recaptcha. Please try again. You may unsubscribe at any time. By signing up, you agree to our terms of use and privacy policy . This site is protected by reCAPTCHA and the Google privacy policy and terms of service apply. Want more of the latest from us? Sign up for more at our newsletter page .
Winnipeg Free Press
08-07-2025
- Business
- Winnipeg Free Press
The EU presidency says Europe must rearm within 5 years. It's unclear how that could be done.
BRUSSELS (AP) — Russia could pose a credible security threat to the European Union by the end of the decade and defense industries in Europe and Ukraine must be ramped up within five years in preparation, Danish Prime Minister Mette Frederiksen warned on Tuesday. In a speech to the European Parliament marking the launch of Denmark's six-month term as holder of the EU presidency, Frederiksen lamented that 'cutting our defense spending in the past 30 years was a huge mistake.' European officials have warned that President Vladimir Putin could soon try to test NATO's Article 5 security guarantee — the pledge that an attack on any one ally would be met with a collective response from all 32. Most of the allies are EU countries. Russia has been accused of acts of sabotage, cyberattacks and fake news campaigns – largely to weaken European support for Ukraine – and while Europe is not at war, it is not at peace either, NATO Secretary-General Mark Rutte has said. 'Russia's military rearming means that they could, within two to five years, pose a credible military threat to Europe and NATO,' Frederiksen told EU lawmakers in Strasbourg, France. 'Strengthening Europe's defense industry is an absolute top priority, and we have to be able to defend ourselves by 2030 at the latest,' she said. 'Never, ever should we allow Europe to be put in a position again where we cannot defend ourselves.' Many European leaders insist they have heard the Trump administration's warning that American security priorities now lie elsewhere – in the Middle East and the Indo-Pacific – but Europe's effort to arm is moving only slowly. When NATO's ambitions are not enough At a key summit last month, NATO leaders endorsed a statement saying: 'Allies commit to invest 5% of GDP annually on core defense requirements as well as defense- and security-related spending by 2035 to ensure our individual and collective obligations.' That historic pledge will require them to spend tens of billions of euros (dollars) more over the coming decade, not five years. Spain – NATO's lowest spender with 1.28% of GDP last year – quickly branded the target 'unreasonable.' The goal has sparked debate in Slovenia – which spent 1.37% of GDP last year – about whether to hold referendums on defense spending and even on NATO membership itself. Belgium has cast doubt over whether it will make the grade. Heavyweights France and Italy are mired in economic woes and will struggle to get there too. Money spent on military support to Ukraine can now be included in NATO's defense calculations, but even that accounting boost will not hike the GDP military spend by much. The EU's Readiness 2030 plan With the threat of Russian aggression at the forefront of its concerns, the EU's executive branch has come up with a security plan. It hinges on a 150-billion-euro ($176 billion) loan program that member countries, Ukraine and outsiders like Britain could dip into. It aims to fill gaps that the U.S. might leave. Spending priorities for joint purchase include air and missile defense systems, artillery, ammunition, drones, equipment for use in cyber and electronic warfare, and 'strategic enablers' like air-to-air refueling and transport. Countries are urged to buy much of their military equipment in Europe, working mostly with European suppliers — in some cases with EU help to cut prices and speed up orders. This is partly to create jobs in the European defense sector and partly to reduce reliance on American systems. On Tuesday, 15 EU countries were permitted to take advantage of another measure — a 'national escape clause' — to allow them to spend more on defense without breaking the bloc's debt rules. To help Ukraine fend off the Russian invasion, the plan aims to provide at least two million artillery rounds each year; supply more air defense systems, missiles and drones; and train tens of thousands of Ukrainian troops annually. Beefing up Ukraine's defense industry is also a pillar. The country produces arms and ammunition faster and more cheaply than its EU partners. Kyiv estimates that 40% more of its industrial capacity could be exploited if Europe were to invest. Still, ambition is one thing, and the reality another. 'Things are not moving fast enough to be able to defend ourselves in 5 years,' Danish Defense Minister Troels Lund Poulsen told reporters last week. 'It's a huge, huge challenge to reach that goal.' On the need to take risks A big part of the problem is that governments and the defense industry are stuck in old ways of thinking and neither wants to take a risk, even with Europe's biggest land war in many decades still raging in its fourth year. 'You cannot expect industry to invest in production capacity if you don't have long-term orders,' said Joachim Finkielman, the director of Danish Defense and Security Industries. 'If you need to build new factories, if you need to engage a larger workforce, you need to make sure that you have that,' he told The Associated Press on Friday. Demand for 155mm artillery shells is a typical example, Finkielman said. 'When you see the kinds of orders that have been placed around Europe, it is two to three years out in time,' he said, while industry needs five to 10 years' worth of orders to take a chance. Finkielman said that if governments and industries in Britain, France, Germany and Italy start to move, 'the rest will follow.' When they might do so is unclear. 'The problem is, we are confronted with a peace-time logic in a situation where there is war in Europe,' he said.
San Francisco Chronicle
08-07-2025
- Business
- San Francisco Chronicle
The EU presidency says Europe must rearm within 5 years. It's unclear how that could be done.
BRUSSELS (AP) — Russia could pose a credible security threat to the European Union by the end of the decade and defense industries in Europe and Ukraine must be ramped up within five years in preparation, Danish Prime Minister Mette Frederiksen warned on Tuesday. In a speech to the European Parliament marking the launch of Denmark's six-month term as holder of the EU presidency, Frederiksen lamented that 'cutting our defense spending in the past 30 years was a huge mistake.' European officials have warned that President Vladimir Putin could soon try to test NATO's Article 5 security guarantee — the pledge that an attack on any one ally would be met with a collective response from all 32. Most of the allies are EU countries. Russia has been accused of acts of sabotage, cyberattacks and fake news campaigns – largely to weaken European support for Ukraine – and while Europe is not at war, it is not at peace either, NATO Secretary-General Mark Rutte has said. 'Russia's military rearming means that they could, within two to five years, pose a credible military threat to Europe and NATO,' Frederiksen told EU lawmakers in Strasbourg, France. 'Strengthening Europe's defense industry is an absolute top priority, and we have to be able to defend ourselves by 2030 at the latest,' she said. 'Never, ever should we allow Europe to be put in a position again where we cannot defend ourselves.' Many European leaders insist they have heard the Trump administration's warning that American security priorities now lie elsewhere – in the Middle East and the Indo-Pacific – but Europe's effort to arm is moving only slowly. When NATO's ambitions are not enough At a key summit last month, NATO leaders endorsed a statement saying: 'Allies commit to invest 5% of GDP annually on core defense requirements as well as defense- and security-related spending by 2035 to ensure our individual and collective obligations.' That historic pledge will require them to spend tens of billions of euros (dollars) more over the coming decade, not five years. Spain – NATO's lowest spender with 1.28% of GDP last year – quickly branded the target 'unreasonable.' The goal has sparked debate in Slovenia – which spent 1.37% of GDP last year – about whether to hold referendums on defense spending and even on NATO membership itself. Belgium has cast doubt over whether it will make the grade. Heavyweights France and Italy are mired in economic woes and will struggle to get there too. Money spent on military support to Ukraine can now be included in NATO's defense calculations, but even that accounting boost will not hike the GDP military spend by much. The EU's Readiness 2030 plan With the threat of Russian aggression at the forefront of its concerns, the EU's executive branch has come up with a security plan. It hinges on a 150-billion-euro ($176 billion) loan program that member countries, Ukraine and outsiders like Britain could dip into. It aims to fill gaps that the U.S. might leave. Spending priorities for joint purchase include air and missile defense systems, artillery, ammunition, drones, equipment for use in cyber and electronic warfare, and 'strategic enablers' like air-to-air refueling and transport. Countries are urged to buy much of their military equipment in Europe, working mostly with European suppliers — in some cases with EU help to cut prices and speed up orders. This is partly to create jobs in the European defense sector and partly to reduce reliance on American systems. On Tuesday, 15 EU countries were permitted to take advantage of another measure — a 'national escape clause' — to allow them to spend more on defense without breaking the bloc's debt rules. To help Ukraine fend off the Russian invasion, the plan aims to provide at least two million artillery rounds each year; supply more air defense systems, missiles and drones; and train tens of thousands of Ukrainian troops annually. Beefing up Ukraine's defense industry is also a pillar. The country produces arms and ammunition faster and more cheaply than its EU partners. Kyiv estimates that 40% more of its industrial capacity could be exploited if Europe were to invest. Still, ambition is one thing, and the reality another. 'Things are not moving fast enough to be able to defend ourselves in 5 years,' Danish Defense Minister Troels Lund Poulsen told reporters last week. 'It's a huge, huge challenge to reach that goal.' On the need to take risks A big part of the problem is that governments and the defense industry are stuck in old ways of thinking and neither wants to take a risk, even with Europe's biggest land war in many decades still raging in its fourth year. 'You cannot expect industry to invest in production capacity if you don't have long-term orders,' said Joachim Finkielman, the director of Danish Defense and Security Industries. 'If you need to build new factories, if you need to engage a larger workforce, you need to make sure that you have that,' he told The Associated Press on Friday. Demand for 155mm artillery shells is a typical example, Finkielman said. 'When you see the kinds of orders that have been placed around Europe, it is two to three years out in time,' he said, while industry needs five to 10 years' worth of orders to take a chance. Finkielman said that if governments and industries in Britain, France, Germany and Italy start to move, 'the rest will follow.' When they might do so is unclear. 'The problem is, we are confronted with a peace-time logic in a situation where there is war in Europe,' he said.
Euronews
08-07-2025
- Business
- Euronews
15 EU countries allowed to violate deficit limit for defence spending
EU finance ministers on Tuesday granted 15 member states the right to deviate from the bloc's fiscal rules in order to massively ramp up defence spending. 'At this critical juncture, investment in our defence capabilities must remain our top priority," Stephanie Lose, Economic Affairs Minister for Denmark, which currently holds the rotating presidency of the Council of the EU, said in a statement. "Today's activation of the national escape clause will allow member states to ramp up defence spending while maintaining sustainable public finances," she added. The countries that have seen their request to activate the national escape clause in the Stability and Growth Pact (SGP) approved are Belgium, Croatia, Czechia, Denmark, Estonia, Finland, Greece, Hungary, Latvia, Lithuania, Poland, Portugal, Slovakia and Slovenia. Germany has also asked to benefit from more lenient fiscal rules for defence but the Council of the EU is not yet in a position to make a decision as Berlin, whose new government took office in April, has not submitted its medium-term fiscal-structural plan outlining the priority public investments and reforms for the coming years. They're expected to do so before the end of the month, with their request to activate the national escape clause likely to be voted on in September. A 2030 deadline The measure allows those member states to boost defence spending by 1.5% of gross domestic product (GDP) annually for four years without consequences even if this brings their total deficit over the 3% of GDP limit mandated in the SGP. It is part of the EU's €800 billion 'Readiness 2030' plan to ramp up defence expenditures over the coming four years with the European Commission previously estimating it could see up to €650 billion poured into the sector. The 16 EU countries that will benefit from more lenient fiscal rules are also members of the NATO military alliance that agreed late last month to more than double its defence spending target to 5% of GDP by 2035. The new target represents a huge ask for some EU allies with a few - Belgium, Italy, Hungary, Romania, France, Poland, Slovakia - already targeted by Brussels with an Excessive Deficit Procedure due to the poor state of their public finances. Neutral Malta is also being closely monitored under the same procedure. While deviating from the fiscal rules for defence will not see them penalised, these eight countries "remain bound by the budgetary rules and must remain committed to the implementation of the revised economic governance framework irrespective of the clause's activation" for all other expenses, the statement from the Council also said. The 27 EU member states are meanwhile currently evaluating whether to participate in SAFE, the other major financial pillar included in the plan to rearm the EU. They're expected to pitch in their projects and requests for funding towards the end of the month with the Commission set to start raising the €150 billion for the scheme on the markets at the beginning of 2026. The new EU arms race comes amid warnings by intelligence agencies that Russia could be in a position to attack another European country towards the end of the decade.
