The new European defence strategy is “grossly late, protectionist and dirigiste”

MP Theo Francken and MEP Johan Van Overtveldt criticise the new European defence strategy: “After two years, there is finally the realisation that the lack of our own high-performance defence industry poses an existential threat. The European Commission is suddenly going very far in its ambitions, while this team is running out of time. We therefore fear for their chances of success,” say Francken and Van Overtveldt.

The European Commission wants to reinforce the EU’s defence industry in the short term, including by promoting joint arms procurement and setting percentages for investment in the European economy. Francken: “The situation is serious, and we must move towards the structural reinforcement of defence capabilities. However, moving towards a more integrated approach within the existing EU frameworks is necessary. I especially miss the European willingness to analyse and solve problems in its own military projects (A400M, NH-90, Eurocopter Tiger and the Eurofighter).”

Francken warns against protectionism and doubts whether Europe can match the American defence industry in the short term. He stresses that efficiency and increasing output must be priorities and that Europe must not only opt for chauvinism.

EUR 1.5 billion is completely insufficient

In addition, funding is crucial for a competitive European industrial complex. The proposed EUR 1.5 billion is completely insufficient. Alternative funding mechanisms, such as joint defence Bonds A loan to a company or a government, which is paid back with interest. In contrast to shares, most bonds have a fixed duration and a fixed interest, which is usually paid out on an annual basis. Therefore, as a general rule, bonds have less risk than shares. bonds , which the federal government advocates, are not a good solution. Francken: “The EU currently has the resources without having to impose additional burdens on citizens, but is misplacing its budgetary priorities in, for example, the cohesion funds.”

Supporting private investment

MEP Johan Van Overtveldt also shares the concerns about financing: “The new strategy provides for ambitious funding from 2028. However, the revision of the current multi-annual budget has only just been completed, with only minimal effort for defence.  Some consistency would be welcome.” In addition, the MEP notes that the Commission wants to operate in a manner that is very dirigiste. Van Overtveldt: “It would make much more sense to encourage private investment, which Member States can support through premiums and/or targeted tax reductions.

Political stumbling block

Approval by national capitals will also be a challenge. Smaller countries may only be able to play a limited role in this project. Theo Francken: “I still want to see how quickly the French are prepared to buy European if it is not their project, or how quickly the Walloon parties are willing to release FN-Herstal weapons.”

Russian assets

Van Overtveldt also insists on urgency regarding support for Ukraine and the use of frozen Russian assets. He calls for concrete action and stresses the need for a coordination-oriented framework for efficient financing.