Europe’s decision to increase defensive costs After years it is a right choice, the European Union finance ministers say (EU), who are meeting in Brussels today, though not everyone has the same view.
“I believe we are facing a European awakening both in terms of security and financial position,” Polish Finance Minister Andrzej Domanski told Bloomberg. “We know that we need to take more responsibility for our safety we need to increase defense spending, but we must also spend wisely.” The head of Europe’s financial services are investigating ways of progressing in terms of defense readiness of the bloc (EU), as tensions with the US on expenditure and the increasing threat of Russia are pushing to accelerate their military development.
Discussions include a new pan -European media, as fiscal -resulted Member States are looking for ideas after years of subcutaneous.
The possibility of a new European Fund will be added to the new € 150 billion lending medium in the rosary to strengthen Europe’s defense industrial capacity in certain strategic sectors in collaboration with some of its closest partners, including Ukraine.
“We are completely ready to support European defense initiatives,” German Finance Minister Joerg Kukies said. “But we have repeatedly said that it is not enough to say in an abstract manner that we will make European funding, as we need to know exactly what we are funding.”he added.
Speaking to reporters before a meeting with his European counterparts, he stressed that “The first step must be a specific military cooperation, common defense initiatives for Europe – when they are ready, you can start thinking about common funding.”
The European Commission (Commission), the EU executive arm, is also ready to “give” up to 1.5% of GDP of national defense spending under its financial supervision, in a move that could mobilize up to 600 billion euros ($ 682 billion).
Some EU capitals want to discuss additional tools, as they believe that more permanent mechanisms will be needed to supply and maintain the European re -equipment race in the medium term and in the long run. The EU’s shift to defense began after Russia’s invasion of Ukraine and accelerated after the spread of doubts between European allies on Trump’s commitment to NATO’s mutual defense clause.
However, some Member States prefer to wait and implement the numerous initiatives discussed so far by the Commission before discussing new initiatives, diplomats said. The most permanent means, such as the European Defense Mechanism, are still particularly divisive, they said.
This new mechanism would design and fund common supplies for European countries, as proposed by Bruegel, a Brussels -based thought tank for the discussion of ministers this weekend (12 – 13.4.2025). “I think it’s good to discuss funding for defense right now, we do it together,” Sweden Elisabeth Svansson said. “The Commission has made various proposals on the table, which we support.”
Pierrakaki statement
At the launch of the informal Eurogroup on April 11, the Minister of National Economy and Finance Kyriakos Pierrakakis made the following statement:
“It is a crucial moment for this continent in which we meet in Warsaw today for the Eurogroup and Ecofin, under the Polish Presidency of the European Union, and meet at a critical juncture of global economic policy, as US trade duties recently imposed.
We will therefore discuss the impact and impact of these international trade events and will further discuss the optimal European response to them.
At the same time, let me emphasize that Greece is fully committed to seeking any solution on the basis of a fair international approach based on the rules of international trade.
We are fully committed to investigating a mutually useful solution between the European Union and the United States, a mutually beneficial trade agreement. And, of course, this will happen by reinforcing the cooperation within the EU, while deepening our union, as we further promote our economic policies and coordinating them properly.
Tomorrow, we will focus more on funding European defense. Greece has long supported the need for further European defense cooperation. We fully support the Commission’s plan to further strengthen European defense and insist on establishing the escape clause, which we believe is extremely important and inextricably linked to the financing of these defense policy decisions.
We, as finance ministers, have a very important responsibility for creating and finding the necessary fiscal space to finance these defense policy solutions. ”
The EU will defend its economy if Washington does not change attitude, says Commissioner Dobrovskis
The European Union (EU) will defend its economy and businesses if the US is not changing their stance on their commercial policy, European Commissioner Valdis Dobrovskis warned today (11.4.2025).
“We are ready to work with the US and find constructive solutions, accepted by everyone,” he said at the start of the meeting of the finance ministers of 27 EU member states in Warsaw. “But we will pass a message: If we do not see a change from the American side, a desire to move away from its tariff policy, we should defend our economy,” Dobrovskis assured.
Today and tomorrow the European Commissioner will have talks with EU ministers in order to either reach a trade agreement with the US to avoid imposing an additional 20% duties on European products exported to the country or, in the event of failure, to coordinate their actions to deal with increased duties.
“I am very optimistic about the durability and stability of the euro financial foundations,” Irish Finance Minister and Eurogroup leader Pascal Donochiou said.