Leaders back von der Leyen’s defense plan. Meloni: “Italy will not divert Cohesion funds”

Brussels–In a European summit that overcame unanimity of the conclusions on Ukraine because of the Hungarian veto, EU heads of state and government agreed on the other big issue on the agenda: European defense. There was united support for the guidelines of the Rearm Europe plan that Ursula von der Leyen presented and a call to urgently explore its feasibility.

In particular, the leaders “welcome” the possibility of suspending Stability Pact rules for military spending. On the activation “in a coordinated manner” of the national safeguard clause, the 27 member states refrain from setting specific limits and numbers, a point of contention between frugal countries and those who have always asked Brussels for more spending freedom. It will be up to the European Commission to determine how and by how much to exceed the thresholds in order to reach a consensus. However, Germany’s historic shift and the more open stance to dialogue of some of the stricter capitals “is opening a debate on a comprehensive review of the Stability and Growth Pact,” cheered Italian Prime Minister Giorgia Meloni.

In the conclusions written by the European Council, The 27 member states “invite” the European Commission to propose “new sources of funding” through “additional possibilities and incentives offered” under “relevant EU programs.” Between the lines is the controversial idea of allowing diverting part of Cohesion funds toward the arms race. A point on which Meloni wanted to dispel any doubts: “I will propose to the Parliament to make it clear from the outset that Italy does not intend to divert Cohesion funds — which are very important for us — to the purchase of weapons,” she told the press during the summit.

 Meloni claimed to have supposedly fought to rule out the possibility of such resources being “forcibly diverted to defense spending.” However,  in presenting the plan two days ago, von der Leyen herself had explained that she wanted to “propose further possibilities and incentives to member states that decide, if they want to use cohesion policy programs, to increase defense spending.”

As for the 150 billion loan facility to member states guaranteed by the EU budget, the 27 states “invite the Council (the economy ministers of the 27,  Ed.) to examine this proposal as a matter of urgency.” The fact that this measure, as well as the activation of the national safeguard clause of the Stability Pact, “have in some way to do with debt,” according to Meloni, “is a risk that needs to be taken into account” for countries like Italy that already have little fiscal space. The premier announced that Economy Minister Giancarlo Giorgetti would propose to his European counterparts that they “consider European guarantee instruments for private investment on the InvestEu model.”