A historic moment for European deepening was yesterday’s Summit on the common defence of EU member states but also on their continued support for Ukraine in the wake of tensions between Kyiv and the US.

In the presence of the Ukrainian president, Volodymyr Zelensky and just hours after the French president, Emmanuel Macron, made a televised address in which he sounded the alarm against Russian aggression, the head of the European Commission, Ursula von der Leyen presented before European leaders her plan to “rearm Europe” by mobilizing 800 billion euros, but also the national escape clause from the fiscal Compact for Growth and Stability.

“This is a moment for Europe, and we are ready to move forward,” the Commission president said, adding that the proposals “could mobilise almost 800 billion euros of defence spending for a secure and resilient Europe.”

Resources

Under the plan, member states are freed up to increase their defence spending from national resources, but also to make use of a new €150 billion instrument that would allow the Commission to borrow from the capital markets to issue bonds and lend to member states, along the lines of the management of the coronavirus pandemic.

According to the president of the Commission, “if member states increase their defence spending by 1.5% of GDP on average (which is the ceiling set by the Commission on additional defence spending per year), this could create budgetary space of close to €650 billion over a four-year period.”

The “keys”

First and foremost, however, in the Summit conclusions “it is also underlined that the protection and defence of all the EU’s land, air and maritime borders contributes to the security of Europe as a whole”, while particular reference is made to the fact that “the security and defence interests of all Member States are taken into account by the Treaties”, an element which is of particular added value in cases of aggressive neighbours, as in the case of Greece and Cyprus.

The armaments

At the same time, on the ground, priority, according to Ursula von der Leyen, should be given to pan-European defence capabilities, such as:

• – air and missile defence,
• – artillery systems,
• – missiles and munitions,
• – drones and anti-drone systems, but also
• – meeting needs for cyber to military mobility.

The escape clause

In the meantime, the activation of the national escape clause of the Stability and Growth Pact has brought relief to many European capitals, including Athens, as additional defense spending of up to 1.5% of GDP will be exempted from EU spending limits for four years.

The five pillars for rearming Europe are also included:

• • – Mobilising more private capital,
  • – Adjusting the mandate of the European Investment Bank (EIB); and
  • – Providing incentives for defence-related investments in the EU budget.

– Providing incentives for defence-related investments in the EU budget.

In practice, Brussels is urging member states to channel funds towards defence and security over other cohesion policies, which, however, should remain within EU borders, i.e., supporting the development of a European defence industry.

At the same time, Ursula von der Leyen spoke of “immediate military equipment for Ukraine”, also sending messages to the other side of the Atlantic. As the Comintern president said, indirectly “photographing” the US, “we will continue to work closely with our NATO partners. This is a moment for Europe. And we are ready to move forward.”

All but Orban

In this context, 26 of the 27 EU member states agreed to continue their substantial support for Ukraine in a joint statement, except for Hungary, which vetoed it, while Slovakia secured the possibility to continue discussions on the transit of Russian gas through its territory.

At the same time, the absence of Athens, Nicosia, and Zagreb from a series of diplomatic meetings lately did not go unchallenged yesterday, especially when Turkey attempted to join the European deliberations.

Mitsotakis: Comprehensive security review

For his part, Kyriakos Mitsotakis remarked meaningfully that “the security of the European continent cannot be limited to its eastern borders” and, branding Turkey, stressed that “security threats also exist in the Western Balkans, the Eastern and Southern Mediterranean and the Middle East”.

In particular, “the security of the European continent must be considered as a whole. It cannot be limited to Europe’s eastern borders, as there are security threats also in the Western Balkans, the Eastern and Southern Mediterranean, and the Middle East,” Mitsotakis concluded.

Remaining a firm believer in the EU’s strategic autonomy, the Prime Minister described the issue at stake when he arrived at the summit as “how we can drastically strengthen our deterrent capability as the EU.

Regarding support for Ukraine, Mitsotakis stressed that European countries cannot leave the United States out of the discussion, as Washington must play a role and participate in the security guarantee system. “The United States should also participate in this security guarantee scheme, and we must constantly fight to convince the United States that this is ultimately in its own interest as well,” he said.

Notably, the Greek prime minister was among the first to support the prospect of EU strategic autonomy and the activation of the escape clause, hence welcoming yesterday “proposals for further budgetary flexibility so that member states, which already spend more than 2% of their GDP on defence spending, can continue to do so.” “And it is very important that this budgetary flexibility applies to all member states of the European Union. To encourage those who spend a little to spend more, to reward those who already spend more and possibly allow them to spend even more on common European defence,” the prime minister concluded, fresh from the EPP’s approval of his declaration on European defence.