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Euractiv
2 days ago
- Business
- Euractiv
FIREPOWER: An intermural EU brawl over defence policy
In today's edition: SAFE update, Rheinmetall on bulk orders, EU budget ambitions. Euractiv is part of the Trust Project Take a free trial of Euractiv Pro to get FIREPOWER in your inbox. Good morning and welcome back to Firepower, The EU has been muscling its way into military matters in a major way over recent years. Sidelined in the process has been the European Parliament, with MEPs so far mostly stuck looking on as key capitals and the Commission reshape defence policy for the bloc. But now the Parliament is fighting back. Sources tell Firepower that a widely anticipated legal challenge to the EU's €150 billion SAFE joint procurement programme will be announced on Monday. Parliament negotiators are also digging in their heels over strict rules on non-European defence firms participating in the Commission's flagship European Defence Industrial Programme (EDIP), and preparing for a showdown over the next seven-year EU budget (more on that below). The stakes? Whether MEPs will have any sway in shaping the EU's moves into the defence space. Stay tuned. Shortages of key explosives like TNT has become a major bottleneck holding up European efforts to boost ammunition production. Opening new production lines is costly and requires gruelling permitting processes. Some companies are reopening mothballed Cold War-era factories, but retrofits take time there as well. More here . Rheinmetall CEO Armin Papperger told Firepower that Europeans should pool together more military orders to avoid skyrocketing prices and achieve better economies of scale. Papperger, visiting Brussels on Wednesday, said that a lead nation approach has worked well with ammunition and air defence systems, with one country coordinating orders on behalf of a larger group of purchasers. BUNDLING: He contended that the same 'Europeanisation of contracts' should be used for vehicle systems as well. 'We need to bundle [orders] so that fair prices can be achieved,' Papperger told Firepower after meeting Ursula von der Leyen along with other CEOs from the German state of North Rhine-Westphalia. The European Commission and NATO have both been pushing countries to place joint orders together to fight price inflation. Prices for 155mm artillery ammunition, for instance, have quadrupled since the beginning of the war in Ukraine as exploding demand strained supply chains for critical components such as TNT. ON THAT NOTE, Rheinmetall announced the largest order in company's history yesterday. An unspecified European NATO country finalised a multi-year deal for 155mm artillery ammunition and bimodular propellants worth several hundred million euros. LONG-TERM COMMITMENT: Papperger didn't say so explicitly, but plenty of defence industry executives have tried to make clear in recent years that large, long-term contracts make it much easier for companies to invest in expanding production facilities and forging tighter relations with suppliers. During his stop in Brussels, Papperger said he also lobbied for a new raft of industrial subsidies and incentives – modelled on the EU's just-expired ASAP ammo programme – to boost the production of long-range missiles. ASAP's core is replicated in the European Defence Industrial Programme (EDIP), still under negotiation. On your radar EDIP, SEASON THREE. Trilogues started this week on EDIP, with a first technical talk yesterday and another this morning. Negotiators from the Parliament and the Council hope to reach a deal by October, but at least two substantive obstacles stand in the way: Disagreements over rules for non-European countries participating in the programme, and the (diminutive) size of the programme's proposed budget, just €1.5 billion. ARTILLERY AMMO FOR UKRAINE. 'We will deliver 2 million shells to Ukraine by the end of the year,' von der Leyen said on Thursday. Her remark anticipates that EU countries will end up coming through on the artillery funding initiative pushed by Kaja Kallas, even though ( last we checked ) it'd only collected pledges for about two-thirds of the cash needed to buy that many rounds. The Europeans will now be racing to increase military support to Ukraine, with reports that the US will halt its own aid . ICELAND WANTS DEFENCE PARTNERSHIP. Reykjavík is the latest capital looking to negotiate a 'Security and Defence Partnership' with the EU, a key prerequisite for accessing joint weapons procurement contracts under the EU's SAFE programme . Eight other countries have already signed such deals, to increase cooperation in areas including cyber defence and military exercises. EUROPE GOES QUANTUM. The Commission pitched a quantum strategy on Wednesday to develop and commercialise the EU-made technology key for security of communications and encryption, as competition from the US and China heats up. Cash Corner €100 BILLION FOR DEFENCE IN THE NEXT EU BUDGET? That's how much EPP MEP Christophe Gomart, the co-chair of the Security and Defence Committee, is hoping to see in the EU's next seven-year budget. He told Firepower that the EU could break 12 digits for defence if EU countries increase their direct contributions for a defence budget in the MFF. Current contributions to the EU budget are set at about 1% of GNI. Some back-of-the-envelope maths: If countries agree to increase that contribution by 0.5 percentage points to 1.5%, that works out to around that extra €100 billion. NOT THE FIRST IDEA. Other prominent voices have previously pitched the same big, round figure for defence. Among them? Current Defence Commissioner Andrius Kubilius, former Defence Commissioner Thierry Breton, the chair of the main European defence industry lobby ASD and several Eastern European countries. BUDGET FIGHTS COMING UP. The €100 billion idea is not outside the realm of possibility, considering Ursula von der Leyen's ambitions to make defence a top EU priority. Defence industry representative David Luengo told Firepower that the figure 'makes sense in a security paradigm shift' and called high-level discussions around it 'serious'. Capitals are divided on WHETHER TO INCREASE THE OVERALL EU POT, a decisive factor in the Commission's draft budget, which will be presented on 16 JULY. Among the other options to increase the budget: more re-purposing of EU civilian and social funds – or possibly taking up more EU debt, a controversial step taken during Covid, and for the EU's new €150 billion SAFE joint military procurement programme. But sources tell us there's nothing close to consensus, at least for now, meaning the budget is likely in for lengthy and difficult negotiations. RECAP: The 2021-27 EU defence & security budget includes just €16.4 billion, or about €2.3 billion a year (although EU countries altogether spent €326 billion on defence in 2024 ). By way of comparison: The Pentagon pitched nearly three times as much for next year, a whopping $961.6 billion (€818 billion). How much is 5% of GDP? Leaders are grappling with just how much 5% of GDP is after pledging their countries to spend that much at last week's NATO summit. For Canada, it comes to around C$150 billion (€93bn) per year, according to PM Mark Carney. That's almost a third of the country's yearly budget of C$449.2 (€281.31billion). In Germany, Europe's biggest economy, each percentage point of GDP amounts to around €45 billion, according to Chancellor Friedrich Merz. That means 5% would come in at €225 billion per year, or a full 45% of Germany's current €476.8 billion government budget. Credit rating agency Moody's warned that because of NATO's higher spending pledge, the debt-to-GDP ratios could rise by 3.5 to 5 percentage points by 2029 for Europe's four largest economies: Germany, the UK, France and Italy. News from the Capitals TURKEY's air force could see major changes in the coming years. Sales of Eurofighter jets could be approved soon , according to the UK, part of the consortium behind the planes. Germany, another member, has previously been blocking the sale. The US ambassador to Turkey, meanwhile, said the dispute with Turkey over F-35 fighters could be settled by the end of the year. The US cancelled sales of F-35s to Turkey after bought Russian air-defence systems. GERMANY plans to deepen cooperation with Israel, including to develop a ' cyberdome ' to defend the country against drones and cyberattacks. German Interior Minister Alexander Dobrindt described the proposal as a 'holistic' system that combines military and civil defence. Dobrindt also pitched increased cooperation between German intelligence agencies and Israel's Mossad, and a new German-Israeli centre for cyber research. UKRAINIAN defence companies plan to open production lines in DENMARK, under a €67 million deal inked on Sunday . The idea of integrating the Ukrainian defence industry into the European market is gaining serious momentum across Europe, and has been named as a key priority for the Commission and Kyiv. Just what it looks like still needs more definition, though. For EU defence chief Kubilius argued back in May that 'Ukraine can benefit from EU production capacity' – while the EU will benefit 'massively' from 'lower production costs'. European Union Next rounds of EDIP technical talks tentatively scheduled for 11, 15 and 17 July; no political trilogues scheduled before September Council EU-Moldova Summit, 4 July, including to 'take stock' of security and defence cooperation ECOFIN Council, 8 July, approve 15 EU countries to activate the national escape clause to increase deficits by 1.5% of GDP each year over the period 2025-2028 to spend more on defence Political and Security Committee, 8-9 July Coreper II, 9 July The Danish Council presidency updated its schedule to move a defence council gathering from 11 November (Armistice Day) to 28 November, and added a second ministerial, 6 October The Agenda of António Costa will be available here European Commission EU Stockpiling Strategy, 8 July, presentation by Commissioner for Social Rights and Skills, Quality Jobs and Preparedness Roxana Mînzatu Andrius Kubilius attends the Ukraine Recovery Conference in Rome, 10-11 July. Agendas of Commissioners will be available here European Parliament Plenary, 7-10 July, with EU defence chief Andrius Kubilus on 7-8 July and a presentation of the Commision's Stockpiling Strategy to MEPs on 9 July. You can find the full agenda here NATO US Army Gen. Christopher G. Cavoli hands over role of NATO's Supreme Allied Commander Europe (SACEUR) to US Air Force Gen. Alexus G. Grynkewich, 4 July The Capitals Emmanuel Macron in the UK, 8-10 July, on a state visit where he will discuss the two countries' relationship on defence at the 37th Summit co-chaired by UK PM Keir Starmer Macron and Starmer will also hold a 'Coalition of the Willing' meeting in the UK on 10 July Other events EESC Public debate on Defence-related investments in the EU budget, 4 July, watch here CSIS event – Denmark's role in European and Transatlantic Security, 8 July, watch here RUSI webinar – Addressing the persistent threat to subsea cables, 10 July, watch here Thank you for reading, Firepower was brought to you by Euractiv's defence team, with additional reporting from Maximilian Henning and Nicoletta Ionta. You can find the rest of our coverage here. We want to hear from you: tell us what you think and what you know! We're at defence@ and each team member is available at Have a nice weekend.
Euronews
3 days ago
- Politics
- Euronews
Ukraine will do 'anything' to advance EU accession despite Orbán veto
Ukrainian President Volodymyr Zelenskyy said Kyiv will do "anything" to advance EU accession talks. "Nobody can stop Ukraine in this way. It depends on unity. From our side, we'll do anything. We need support from all other leaders," he said, speaking at the opening ceremony of the Danish EU Presidency in Aarhus. Zelenskyy spoke alongside Danish Prime Minister Mette Frederiksen, President of the European Council António Costa and President of the European Commission Ursula von der Leyen. Frederiksen vowed to support Ukraine's accession process to join the European Union. Denmark aims to use its presidency of the EU Council to put "maximum pressure" on Hungary to lift its veto on Ukraine's EU membership negotiations. "Ukraine belongs to the European family and NATO," Frederiksen said, adding that Denmark is thinking about the "best way forward," without sharing additional details. It comes as Russia continues to intensify its attacks on Ukraine, and the United States decided to halt some promised air defence missiles and weapons, which it had already pledged to Ukraine. When asked about the pause in military assistance, Zelenskyy said he will speak with US President Donald Trump soon, but did not go into further detail. The Ukrainian President called on the EU to invest more in Kyiv's defence industry. Frederiksen said she hoped for continued US military support, but vouched to fill any gaps if necessary. Speaking at an earlier press briefing alongside von der Leyen, Frederiksen emphasised a need for a change in mindset. "When we are delivering weapons to Ukraine, instead of thinking it as donations, we have to think of it as a part of rearming ourselves," Frederiksen said. "Because right now it is the army in Ukraine that is protecting Europe," she added. Von der Leyen added that "financial possibilities are in place to directly support Ukraine," urging member states to make use of the Security Action for Europe (SAFE), a €150 billion budget introduced at the end of May that will help support member states that with to invest in defence. "Member states can take this money and either buy military equipment and give it to Ukraine, or they can take this money and invest it in the extremely efficient Ukrainian defence industry," von der Leyen noted.
Euractiv
3 days ago
- Business
- Euractiv
‘A serious setback': EU laments US decision to cut arms shipments to Ukraine
Aarhus, DENMARK – Donald Trump's decision to curtail weapons deliveries to Ukraine represents a 'serious setback' for Kyiv and for European security, EU leaders said on Thursday. Danish premier Mette Frederiksen and European Commission President Ursula von der Leyen urged fellow policymakers to boost defence spending and military support for Ukraine in its war against Russia. The comments come after Washington abruptly halted deliveries of advanced weapons systems to the war-torn nation this week, causing Kyiv to summon the US chargé d'affaires to its ministry of foreign affairs. 'If [the] US decides not to provide Ukraine with what is needed, it would be a serious setback, for Ukraine and for Europe and for NATO,' said Frederiksen, whose country took over the rotating EU Council presidency earlier this month. 'We will look into the decisions made in Washington. We hope that the transatlantic partnership, when it comes to Ukraine, will stay on. It's important for all of us. [But] if there will be any gaps, I think we will have to fill them up,' she added. Frederiksen's remarks were echoed by von der Leyen, who urged EU governments to make to use of the recently introduced €150 billion SAFE facility, which provides loans to finance joint military projects. 'Member states can take this money [from SAFE] and either buy military equipment and give it to Ukraine, or they can take this money and invest it in the extremely efficient Ukrainian defence industry,' von der Leyen said. "Our European family" Both leaders also said European security would be bolstered by the EU's defence 'omnibus' package, which aims to boost military investments by slashing regulations for defence companies and financial institutions across the bloc. They also said that the EU should accelerate efforts to pass its 18th sanctions package against Moscow, which is currently being blocked by Slovakia and Hungary over concerns about a potential loss of access to cheap Russian energy. Both also reiterated their call for Ukraine to be admitted to the EU – a move which is also currently being vetoed by Hungary. Frederiksen alluded to the symbolism of Volodymyr Zelenskyy, Ukraine's president, also being in Aarhus on Thursday. 'Ukraine is part of our European family, and it is very important for us that President Zelensky has been able to join us here today in Aarhus,' she said. 'Our European family would not be complete without his presence.' Trump posted on Thursday that he would also speak with Vladimir Putin at 16:00 CEST. The Financial Times also reported on Thursday that Trump and Zelenskyy will hold a call tomorrow to discuss the US decision and potential future weapons shipments to Kyiv. In February, the US briefly halted weapons sales and intelligence sharing with Ukraine after a disastrous public confrontation between Zelenskyy and Trump in the Oval Office. (om)
IOL News
3 days ago
- Politics
- IOL News
BRICS+ Series: Reforming South Africa's Education System
Mbuyisa Makhubu Primary School in the are of Orlando West, in the South African township of Soweto. For many South Africans, education is a privilege and praised once completed. However, for many other South Africans, quality education is a far distant dream for a multitude of reasons. To begin with, South Africa is severely unequal and really, that can be considered the root or foundation for all the other reasons behind the inaccessibility of quality education. By virtue of quality education being distributed disproportionately and the vast majority of South Africans falling under the bracket of 'low quality schooling', a similar majority of students will be disadvantaged when trying to enter the workforce; because if former students are not well educated, how will they fulfil complex or meet the entry expectations and requirements of their future jobs? The education system for any country is massively critical for the development of the country and the continuity of the country's skills and knowledge. It has been said that the South African education system is characterised by 'crumbling infrastructure, overcrowded classrooms and poor educational outcomes'. Infrastructure Failures That Persist Poor education, poverty, and societal problems are a recurring cycle. Public schools suffer from horrific infrastructure, leading to tragic incidents like children dying in pit latrines. This reflects apartheid's legacy of under-maintained infrastructure, hindering conducive learning environments. Apartheid's racial segregation dictated school access and quality. Wealthier students have an advantage with tutors and adapted better to online learning during COVID-19 lockdowns. As of 31 March 2025, 93% of pit latrines have been eradicated under the SAFE initiative. However, 141 schools, especially in Limpopo and the Eastern Cape, still use these dangerous facilities. A 2 June 2025 report attributes delays to funding and logistical shortfalls, urging stronger corporate-sector involvement and deployment of the Khusela sanitation unit in public–private partnership schools. Physical accessibility to schools remains an issue, despite a collaboration between the Departments of Transport and Education to provide transport for students living over 3km away. This initiative faces challenges like funding, insufficient, and unsafe transport options, disproportionately affecting low-income households. Students arriving fatigued or with safety concerns impact their performance. When educators lack resources and support, and students arrive already disadvantaged, a prosperous outcome is unlikely. The Workforce Equation: Skills, Unemployment and the Future South Africa faces a challenge: preparing its workforce for a rapidly changing, tech-driven labor market. The education system is outdated, ill-equipped to train students for the future, especially with the global rise of AI. This is reflected in the country's high unemployment rates in Q1 2025: 32.9% nationally, 43.1% expanded, and 46.1% for youth (15-34), leaving over 4.8 million young people jobless. However, progress is being made. Microsoft's R5.4 billion initiative aims to train 1 million South Africans in AI and cybersecurity by 2026, funding 50,000 certification exams to boost digital skills and tech employment. Youth programs like the Wind Industry Internship (June 2025) are also providing green energy sector training. A BRICS+ Opportunity for Shared Development The current education system and skills development pipeline is not good enough. But this is not just a domestic crisis. As a founding member of BRICS, and now within the expanded BRICS+ framework, South Africa's educational challenges reflect shared realities across much of the Global South. Issues like under-resourced schools, youth unemployment, and digital skills gaps are familiar not only to South Africa, but also to countries like Ethiopia, Iran, Egypt, and even large emerging economies like India and Indonesia. This shared experience also opens space for shared solutions. South Africa has much to gain from deeper cooperation with BRICS+ peers. Countries like China and India have pioneered low-cost, large-scale digital education programmes that bring coding and AI training to rural youth. Brazil and Cuba have longstanding public–private vocational training models that balance academic learning with real-world skills. Russia and Kazakhstan have developed university–industry partnerships that could inspire more hands-on, work-integrated learning. From Malaysia to Uzbekistan, governments are experimenting with green-skills development and dual education systems that better prepare youth for fast-changing labour markets. At the same time, South Africa brings its own strengths to the bloc, a young population, world-class universities, and a regional position that makes it a key gateway to the rest of Africa. Through coordinated investment, cross-border edtech initiatives, collaborative teacher training, and multilateral funding for infrastructure (including sanitation and connectivity), BRICS+ can play a transformative role in reshaping South Africa's education landscape. This isn't about charity, it's about strategic partnership, where improved education outcomes in South Africa uplift the entire BRICS+ bloc. A more literate, skilled, and confident South African workforce is an asset to shared development, sustainable industrialisation, and South–South solidarity. Shared Accountability, Shared Potential The onus does not only fall on the government or individuals, South African society at large, including corporates, investors, unions, civil society, and international partners, must take part in building the education system the country deserves. With dedicated effort, adequate funding, and the adoption of modern technology, South Africans can become more literate, more skilled, and better positioned to boost employment, drive innovation, and contribute meaningfully to both national and BRICS+ development. The question isn't only whether South Africa is ready for the future, it's whether BRICS+ is ready to help shape it, together. *Dr Iqbal Survé Past chairman of the BRICS Business Council and co-chairman of the BRICS Media Forum and the BRNN *Banthati Sekwala Associate at BRICS+ Consulting Group Egyptian & South African Specialist **The Views expressed do not necessarily reflect the views of Independent Media or IOL. ** MORE ARTICLES ON OUR WEBSITE ** Follow @brics_daily on X/Twitter & @brics_daily on Instagram for daily BRICS+ updates
Euractiv
3 days ago
- Business
- Euractiv
Next round of talks over EU defence industry programme centre around role of foreign defence firms
Negotiations over the EU's proposed European Defence Industrial Programme (EDIP) between Parliament and the Council will hinge primarily on just how much money can flow to non-European defence companies. Technical trilogue talks on the programme start on Thursday, following an initial round of political discussions between MEPs and Council representatives earlier this week over the Commission's proposed €1.5 billion plan to revamp Europe's defence industry . Both sides are aiming for a final decision in October, according to two sources close to the file. Parliament negotiators object to waiving otherwise strict eligibility rules for missile and ammunition producers headquartered outside the EU – a concession several EU capitals insisted on during negotiations before agreeing to support the programme. A compromise text agreed by member states two weeks ago would exempt ammunition and missile makers from rules requiring technology sharing with European firms in order to qualify for EDIP funding – including so-called "design authority", which gives EU-based companies the right to modify and redesign products. Parliament strongly opposes any exemptions to the eligibility criteria governing which contractors and subcontractors can take part in EDIP-funded defence projects. MEPs adopted their version of the EDIP text – which doesn't include such carve-outs – two months ago. Differing defence goals The Commission first unveiled the plan more than a year ago, but progress has been slow due to lengthy disagreements over how much EDIP money can flow to outside firms. Some want to use the programme to build up Europe's defence sector and steer money toward domestic firms, while others see the priority as buying needed military hardware as quickly and efficiently as possible. MEPs largely take the former view, seeing the programme as a long-term roadmap to rebuild Europe's industrial defence base and reduce reliance on weapons manufacturers in third countries, particularly the United States. Granting access to non-EU missile and ammunition producers is seen as counterproductive. Some MEPs have argued that countries could tap into the programme's budget for European production, while still purchasing foreign military equipment out of their own national budgets. More money? Parliament is hoping to land on a much higher number than the current €1.5 billion envisioned for the programme. Among those pushing for that are the two French co-rapporteurs, François-Xavier Bellamy of the centre-right European People's Party (EPP) and Raphaël Glucksmann of the centre-left Socialists and Democrats (S&D). Broadening the proposed €1.5 billion should also be high on the agenda. MEPs pitched a much higher envelope in March, including an additional €15 billion from the €150 billion Security Action for Europe (SAFE) loan programme. It could also be bolstered by an additional €5 billion in SAFE loans for Ukraine's defence industry and purchases from Ukrainian firms. Denmark, which took over the Council presidency from Poland earlier this week, is leading the talks on behalf of the member states. The country, which had an opt-out on EU defence policy until just two years ago, has made the file one of the top priorities for the presidency. Technical talks will follow on Friday, and three additional technical trilogues are scheduled until 18 July. (bts, aw)
