Although the support was given by a narrow majority, it is considered indicative. However, the Legal Affairs Committee currently rejects the proposal due to insufficient justification.
The European Defence Industry Programme (EDIP) provides €1.5 billion in EU funding until 2027. The aim is to increase the production of military equipment within Europe and to promote cooperation among member states. At least 70% of the equipment must be produced within the EU. Additionally, work is underway on joint tenders and the establishment of a European military sales mechanism.
At the same time, the European Commission has proposed the ReArm Europe plan, which envisions €150 billion in loans for joint acquisition of tanks and heavy weapons. However, this plan was rejected by the European Parliament’s Legal Affairs Committee, which claims that the Commission is trying to bypass Parliament by using emergency powers.
In light of the Russian invasion of Ukraine, EU countries have decided to continue supporting Ukraine no matter what, whatever it takes…. Among other measures, the EU has imposed sanctions against Russia and offers Ukraine favorable trade conditions to keep the economy running. It remains unclear how financing for the ReArm Europe plan will be realized given the legal objections and lack of consensus within the European Parliament.
Within both the EU and NATO, discussions are underway about the need for European countries to possibly spend an additional €800 million on their own defense within five to six years. This debate has been fueled by statements from U.S. President Donald Trump, who made it clear last year that he would no longer offer full protection to European countries and increasingly sided with Russian President Putin in the war against Ukraine.
Commission President Ursula von der Leyen visited British Prime Minister Keir Starmer this week to strengthen cooperation between the EU and the United Kingdom. The two leaders discussed not only the possibility of a defense and security pact but also possible cooperation in the fields of energy and trade.
Since the United Kingdom left the EU through Brexit, the British economy in particular has suffered. Much less is now exported to European countries. The proposed defense pact could give British defense companies access to the €150 billion European rearmament fund. In exchange, the UK is considering making concessions regarding fishing rights, a sensitive topic since Brexit.