EU Urged to Boost Joint Defense Spending Amid Global Shifts

A groundbreaking report released on September 9, 2024, urges European Union governments to significantly increase joint defense spending. The document emphasizes that the bloc can no longer rely solely on the United States for security, highlighting a critical juncture in European defense strategy.

The report, commissioned by European Commission President Ursula von der Leyen, underscores the weakening of Europe's collective power due to national competition within the bloc's defense industry. This assessment comes at a time when NATO allies have warned of Russia's rapid armament, suggesting Europe may have as little as three years to prepare for potential aggression.

Mario Draghi, former President of the European Central Bank and ex-Italian Prime Minister, authored the report. He calls for a comprehensive "industrial strategy for Europe," proposing an annual investment of €800 billion to prevent the EU from lagging behind the US and China in various sectors, including defense.

Draghi's analysis points to several factors driving the urgency for increased European defense capabilities:

• Shifting US focus: Washington has been gradually redirecting its strategic attention from the Euro-Atlantic region to the Indo-Pacific over the past two decades.
• Russian aggression: The invasion of Ukraine in February 2022 has heightened security concerns in Europe.
• Potential changes in US leadership: Fears of reduced US commitment to European security under different administrations.

The report highlights that while the EU collectively is the world's second-largest defense spender, it only allocates about one-third of Washington's defense budget. Furthermore, only 10 EU member states that are also NATO members currently meet the alliance's 2% GDP defense spending target.

"Without action, we will have to either compromise our welfare, our environment or our freedom."

Draghi's recommendations include:

• Centralizing defense procurement in Brussels
• Overhauling EU competition policy to focus defense spending on bloc companies
• Increasing joint procurement to mitigate supply shortages

The report also notes the fragmentation of the EU defense industry, citing that member states operate 12 types of battle tanks, while the US produces a single model for its armed forces.

As the EU faces these challenges, it's worth noting that the bloc has been working on strengthening its defense capabilities. The European Defense Agency, established in 2004, aims to improve EU defense capabilities. Additionally, the Lisbon Treaty, which came into force in 2009, includes provisions for a common EU defense policy.

In recent years, initiatives such as the European Defense Fund (created in 2017) and the Permanent Structured Cooperation (PESCO, launched in 2017) have been established to deepen defense cooperation among EU member states. These efforts, combined with the recommendations from Draghi's report, could shape the future of European security and defense policy for years to come.