The European Union finance ministers began discussions on Saturday
On the creation of a European Defense Mechanism (EDM), a supranational organization that would centralize the purchase of weapons and make them available to the participating European countries in exchange for a contribution.
This proposal for British inspiration was subject to twenty -seven years for Bruegel’s economic reflection group, based in Brussels, to allow European countries to finance their effort to rearma without having too much
Shut up, in a context for the disconnection of the United States in the continent. This is a good starting point for discussion, “he said
Portuguese finance minister Joaquim Miranda Sarmento.
Several EU member countries have said that they were interested in establishing this mechanism, whose architecture remembers that of the European stability mechanism established during the euro zone crisis.
The European Commission has presented a rearma plan of 800 billion euros for four years by saying that it is ready to soften the budget rules imposed on the states, excluding military expenditure from the calculation of the budget deficit, and
Launch a common loan of 150 billion euros. But this commitment does not solve the problem of financing very indebted countries, which would see that its debt grows more, even if its deficit remains on the nails.
An intergovernmental fund that allows the safety of all participating countries
Therefore, the idea of an intergovernmental fund has come to acquire certain armaments that could benefit the safety of all participating countries, such as missiles or the military satellite system. This EDM would have an important capital, which would allow you to borrow in the markets.
It could also be open to countries outside the EU that share the same concern against the threat of an attack against Russia, such as the United Kingdom, Ukraine and Norway.
The EDM is the owner of the team that would buy, the debt hired to pay them would be recorded in the EDM accounts, instead of national accounts. Such a mechanism would also promote the appearance of a European defense market, which could reduce costs and group the resources of the participating states.
A market still very fragmented without economies of scale
At present, the march of the European weapons is very fragmented, for example, not less than seven types of assault vehicles or infantry combat, which reduces interoperability between European armies and avoids economies of scale.
The EDM could initially concentrate its efforts on strategic weapons or infrastructure necessary for the proper functioning of armies, for which Europe currently depends a lot on the United States.
These include joint command and control systems, intelligence and satellite 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 document, the EU has the opportunity to reduce its military dependence on the United States by 2030 only if it has joint purchases and creates a European defense market that would reintegrate the United Kingdom, actor, actor
Greater industrial manufacturer.
Source: BFM TV
