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'Are we serious about war?': EU defence chief calls for increased budget

Created at 2 Jul · 10:40 AM1 source↑ Market-relevant
IN SHORT

European Commissioner for Defence and Space Andrius Kubilius urged EU member states to align their defense spending with their security ambitions, calling for an increase in the EU budget to 12-15% of GDP to avoid conflict and enhance joint procurement.

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Key Numbers

12-15%EU budget as percentage of GDP for defence
4%proposed cut to Competitiveness Fund

Who's Involved

Andrius Kubilius
European Commissioner for Defence and Space
Germany
Net contributor country pushing for budget cuts
Netherlands
Net contributor country pushing for budget cuts
Cypriot presidency
Proposed cut to Competitiveness Fund
'Are we serious about war?': EU defence chief calls for increased budget

↳ Why This Matters

The call highlights a critical tension within the EU between fiscal conservatism and the growing need for collective defense capabilities in a volatile geopolitical landscape, potentially impacting future budget allocations and the bloc's security architecture.

Key facts

  • EU Commissioner for Defence and Space Andrius Kubilius called for increased defense spending.
  • He urged member states to raise the EU budget to 12-15% of GDP.
  • Kubilius highlighted the economic damage of conflict and the deterrent effect of preparedness.
  • The call follows a proposal to cut the Competitiveness Fund by 4%.
  • He emphasized the efficiency of joint procurement at the EU level compared to national spending.

European Commissioner for Defence and Space Andrius Kubilius has urged EU member states to align their defense spending with their stated security ambitions, particularly in the context of upcoming budget negotiations. Kubilius emphasized that a strong defense posture is the best deterrent against conflict, citing the ancient Roman proverb, 'If you want peace, prepare for war.' He argued that cutting defense budgets is a false economy, as the economic damage from escalating tensions into open conflict is far greater. To avoid war and ensure security, Kubilius proposed increasing the EU budget to between 12 and 15 percent of Europe's gross domestic product. This call comes in the wake of a proposal from the Cypriot presidency of the Council of the EU to cut the Competitiveness Fund, an instrument designed to boost technological innovation and defense, by 4 percent. Kubilius noted that net contributor countries, often referred to as 'frugals,' such as Germany and the Netherlands, have advocated for broader budget cuts while simultaneously calling for resources to be redirected towards defense priorities, potentially at the expense of traditional areas like the common agricultural policy and cohesion policy. The Commissioner asserted that increasing defense spending at the EU level provides significant added value through joint procurement procedures, which he believes are far more efficient than national-level spending. He drew a parallel with the United States, where the federal budget expanded substantially during World War II, coinciding with the development of its modern welfare and security state. Kubilius concluded that if member states wish to avoid war and save money on defense, they should increase both the overall EU budget and government spending at the EU level.

Frequently asked questions

European Commissioner Andrius Kubilius proposed increasing the EU budget to 12-15% of Europe's gross domestic product to bolster defense.

The Competitiveness Fund is an instrument aimed at boosting technological innovation and defense within the EU.

Net contributor countries like Germany and the Netherlands, often called 'frugals,' have pushed for budget cuts.

Increased EU-level defense spending offers added value through joint procurement procedures, which are considered more efficient than national spending.

What Happens Next

01EU member states will engage in upcoming budget negotiations.
02The EU will consider proposals for defense spending and budget allocation.

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Cadence

How It Developed

European Commissioner for Defence and Space Andrius Kubilius urged member states to match defense ambitions with spending.
Kubilius cited an ancient Roman proverb, 'If you want peace, prepare for war,' as a deterrent.
He proposed increasing the EU budget to 12-15% of GDP to avoid war.
This comes after a proposal from the Cypriot presidency to cut the Competitiveness Fund by 4%.
Kubilius argued that increased EU-level defense spending offers added value through joint procurement.
He drew a parallel to the US federal budget expansion during World War II.

Sources

T1
'Are we serious about war?': EU defence chief calls on countries to live up to security ambitionsEuronews

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