European Union finance ministers are set to discuss strategies for financing defense on Monday in Brussels through various means including new joint borrowing, existing EU funds, and an increased role for the European Investment Bank. The Polish EU presidency stated that decisions are expected in June. In a letter addressed to the ministers, Andrzej Domanski, the finance minister of Poland, highlighted the importance of the meeting following up on discussions by EU leaders last Thursday.
In light of the shifting security landscape and the need for stable funding, Domanski emphasized the necessity of developing European defense capabilities systematically.
The discussions will also focus on a European Commission proposal to raise 150 billion euros for defense projects and potential changes in EU fiscal rules to accommodate increased national defense spending.
Furthermore, the ministers will explore utilizing EU cohesion funds for dual-use projects benefiting civilians and the military, as well as expanding the lending capacity of the EIB to support European defense efforts.
Another key agenda item will be broadening the definition of defense spending to encompass various aspects beyond military hardware, such as personnel and infrastructure investments necessary for defense purposes.
Additionally, considerations on measuring defense spending increase and the duration of fiscal flexibility are to be addressed, with Poland advocating for a longer-term approach in light of the lasting nature of defense projects.
The proposed changes aim to ensure a more comprehensive and sustainable framework for Europe's defense capabilities.