According to the European Commission, the challenges for the EU multiannual financial framework have changed since the previous budget round in 2021. The Russian invasion of Ukraine, tensions at Europe’s eastern border, and a changing global economic order require more investments in security. At the same time, the EU must become more economically competitive in response to impending American and Chinese trade measures.
A significant part of the existing structural funds, which are currently primarily used for regional development in less prosperous areas, should according to the proposal also be usable for defense-related projects in the future. This could involve, for example, the construction of infrastructure that can also be used militarily or strengthening the defense industry.
The Commission talks about a total amount of more than 392 billion euros up to 2027. Exactly how much of that should go to defense and the economy has not yet been established. EU countries should be given the flexibility to set their own priorities, as long as they contribute to the EU’s ‘strategic autonomy,’ according to the proposal.
The plan is politically sensitive. Several member states, especially in Eastern and Southern Europe, fear that the original goals of the structural funds, such as reducing regional disparities, will come under pressure. Some Members of the European Parliament also question the reorientation of funds intended for social and economic cohesion.
Supporters point out that military resilience and economic strengthening are precisely conditions for sustainable development. If European regions are safer and better connected, local economies will also benefit, says the Commission. Moreover, it is emphasized that member states are not obliged to make defense expenditures, but that it is an option. This provides countries like Hungary and Slovakia a possible opt-out.
In addition to the proposal to reorient the structural funds, the Commission also presented a broader roadmap for strengthening European defense capabilities. This includes calls for more joint procurement in weapon acquisitions and faster deployability of European troops. The emphasis is on cooperation and coordination between member states.
On Wednesday, the European Parliament gave its support in a separate resolution to the plans to make Europe ‘resilient’ against external threats. With a large majority, the parliament voted in favor of more joint defense projects and the principle that ‘everything necessary’ must be possible to guarantee the security of the EU.