Defense, leaders postpone to 2025 the point on industry funding

Brussels – Move on with the revitalization of the defense industry, with the financial uncertainties still to be resolved, with an appointment set for next year to talk about it. The EU heads of state and government confirmed their intention to revive the sector’s industry, which has become a must, in light of geopolitical turmoil. However, with an EU executive being disbanded and recomposed, this will be inevitably postponed until 2025.

The conclusions of the European Council summit give broad yet clear directions. “The European Council invites the Commission and the High Representative to present developed options, to be discussed by the Council, for public and private funding to strengthen the defense technological and industrial base and address critical capability gaps.”

Compared to past leaders’ meetings, not much seems to have changed.

The problem is that the resources are not there, as has already emerged in commitments to support Ukraine, which has laid bare the limits of an ambitious but money-strapped EU. There is a group of countries (Denmark, Sweden, the Netherlands, and Germany leading the way) opposed to the idea of a common spending instrument in the area. The imperative is certainly “spending better” and “increasing defense spending,” with the latter expression requiring national commitments.

European leaders leave the table with the same delays as always: political delays, first and foremost. The need for a step change in defense goes back almost a decade. In 2015, Jean-Claude Juncker, then President of the EU Commission, called on member states to move toward a European army to send a message to Moscow. What has changed since then is mainly in the Kremlin’s policies, in deteriorating relations with a Russian federation against which the EU, despite commitments and proclamations, is working very little in practical terms.

The European army will not happen, not least because progress on defense integration, the conclusions say, will have to take place “subject to the specific character of the security and defense policy of certain Member States.” Forward, in random order, then. Trying to figure out where and how to find the money calmly and leveraging the European Investment Bank. The European Council calls on the EIB “to further assess and adapt, as appropriate, its lending policy to the defense industry while safeguarding its financing capacity.” AAA defense wanted. But the search continues for even more ways to support it.