site.btaBrussels Plans to Tap Mainly European Manufacturers for EU's Rearmament

The European Commission plans to acquire 65% of the equipment needed for EU's rearmament from European manufacturers, the European Economic Community and the European Free Trade Association. This is outlined in a defence white paper unveiled on Wednesday in Brussels.

According to the Commission, it is possible that by 2030 EU countries will benefit from concessions on budgetary rules when investing in defence capabilities. In these cases, countries will have to submit specific plans for approval by the commission and the EU council, totalling up to 1.5% of their GDP. Decisions are to be coordinated with NATO.

EU countries will be able to rely on around EUR 800 billion for these purposes, of which EUR 650 billion from the EU budget and EUR 150 billion in loans. These funds will make it possible to provide air defence systems and munitions, to develop dual-use infrastructure and to improve European military production capabilities.

The Commission envisages deeper integration of the defence industries of the EU and Ukraine. It is proposed that Ukraine should be allowed to participate in joint EU procurement of defence equipment.

These proposals are to be discussed at a European Council meeting on Thursday.