The European Union discusses the creation of a European defense mechanism
The European Union finance ministers (EU) began discussions on the creation of a European Defense Mechanism (Med), a supranational organization which centralizes the purchase of weapons on Saturday and would make them available to European countries participating in exchange for a contribution.
This British inspiration proposal was subject to twenty-seven by the group of Bruegel economic reflectionlocated in Brussels, in order to allow European countries to finance their rearmament effort without having to go into debt too heavily, against the backdrop of the United States on the continent.
Several EU member countries have said they were interested in setting up such a mechanism, the architecture of which recalls that of the European stability mechanism put in place during the euro zone crisis.
The European Commission has unveiled a reset plan of 800 billion euros over four years by saying that it is ready to soften the budgetary rules imposed on States, excluding military expenditure from the calculation of the budget deficit, and to launch a common loan of 150 billion euros.
But this commitment does not solve the problem of financing very indebted countries, which would see their debt grow more, even if their deficit remains in the nails.
The idea of an intergovernmental fund has therefore made its way to acquire certain armaments which could benefit the security of all participating countries, such as missiles or military satellite systems.
This Med would have an important own capital, which would allow him to borrow on the markets. It could also be open to countries outside the EU which share the same concern in the face of the threat of an attack on Russia, such as the United Kingdom, Ukraine and Norway.
The Med being the owner of the equipment he would buy, the debt contracted to pay them would be registered in the accounts of the Med rather than in national accounts. Such a mechanism would also promote the emergence of a European defense market, which could make it possible to reduce costs and pool the resources of the participating states.
At present, the European armament market is very fragmented, with for example no less than seven types of tank of assault or infantry combat vehicles, which reduces interoperability between European armies and prevents economies of scale.
The MED could initially concentrate its efforts on strategic weapons or infrastructure necessary for the proper functioning of the armies, for which Europe is currently very dependent on the United States.
These include joint command and control systems, satellite intelligence and communication, the development of new expensive systems, such as fifth or sixth generation hunting planes, air defense systems or missiles used for nuclear deterrence.
According to the Bruegel group's document, the EU has a chance to reduce its military dependence on the United States by 2030 that if it is purchasing in common and creates a European defense market which would reintegrate the United Kingdom, a major industrial player in the sector.
Source: Lemonde