Although the state -of -the -arts of the countries of its members EU They are expected to raise less revenue this year and the year, they will have to pay even more expenses for the defense in relation to the past.
In this assumption (that is, fewer revenue to European Development Funds, more defense expenses) one could summarize the statements of EU Commissioner for Economic Affairs, Valdis Dombrovskis at the end of the first day of the EU Treasury SynodEcofin19.9.25).
Domprorovskis did not… chew his words in relation to the prospects of EU economic development and admitted on say that “The dynamics of growth is expected to slow down, but not reversed, in the second half of the year.”
And explained by saying that “This reflects many adverse problems – including the slower development of world trade, ongoing uncertainty and geopolitical turmoil.
Therefore, Growth prospects for the following year have become a little weaker than they were when we published our spring forecasts».
Decrement of growth, although Dobrovskis has not explicitly stated it, will question the fiscal viability of EU member states (as lower growth means lower tax revenue), especially at the same time -to increase defensive costs at the same time.
The Community Commissioner on Finance said in his own way, pointing out that “Ensuring fiscal viability and simultaneously ensuring sufficient costs for key priorities, in particular security and defense, will remain a critical issue in the future.”
“The Commission will help Member States make these difficult political choices, including through a credible implementation of the new framework for economic governance,” he added.
At the same time, the Commission is asking EU member states to tighten their belt to increase defense spending, and the European “savings union” and the “banking union” are axes that “should be made progress” (as Dobrovskis said, A new loan in Ukraine, with a completely uncertain repayment.
Specifically, it plans to raise resources from frozen Russian assets (without affecting their original capital), to give it to Ukraine under the – completely uncertain prerequisite – that the loan will be repaid with funds will pay (?) As a war compensation in Ukraine …
Specifically, Dobrovskis said that “as President Ursula von der Laien announced in her speech on the situation of the Union, it will be a limited appeal loan to Ukraine, which will be funded by cash -owned cash from frozen assets.”
“This, however,” the Community Commissioner noted, “will not affect Russia’s claim on financial institutions held by these immobilized cash balances, which will remain in force. But This loan will only be repaid if and when Ukraine receives damages from Russia, essentially in advance. It is right for Russia to pay for the war that began. “
Of course, this presupposes that Russia will accept to do so, while everyone knows that war compensation is paying for that country that is losing a war and for the time being, it is uncertain if Russia will lose in that particular showdown …
The bell Draghi
The above statements by Dobovsis came just four days after the statements Draghi at an event for the 1st anniversary of the publication of his famous study.
Specifically, Mario Draghi said that (according to an expert report published in late July 2025) “The ECB is now setting the annual investment requirements for 2025 – 2031 in almost 1,200 trillion. EUR 800 billion euros a year ago. “
“Public sector share has almost doubled, from 24% to 43% – an additional 510 billion euros a year, as defense is mainly funded by the State,” Draghi said.
But he pointed out that “The fiscal space is limited. Even without these new costs, EU public debt is expected to rise by 10 percentage points in the next decade, reaching 93% of GDP – based on growth assumptions that are more optimistic than today’s reality.
A year later, Europe is in a more difficult position. Our development model is weakening. The vulnerabilities are increasing. And there is no clear course for funding the investments we need. And we have been reminded, in a painful way, that inaction threatens not only our competitiveness but also our very sovereignty. “Draghi stressed.
However, the ECB report – which Draghi is cited – says something else: 21% or EUR 110 billion per year of the additional necessary public funding of € 510 billion cannot be covered by the existing EU tools and requires budgetary austerity measures (cost reduction and/or increased tax revenue.