Financial Times: New stumbling block in the dispute between France and Germany over the rearmament of Europe

The proposal to inject 150 billion euros into the EU's defense industry has become a new stumbling block in the long-standing dispute between France and Germany over the continent's rearmament program and whether it should include countries outside the EU, writes the Financial Times, quoted by FOCUS.

Last week, the European Commission proposed a new instrument for lending to member states through the EU budget for the purchase of weapons, with the size of the program being up to 150 billion euros.

Although the idea received unanimous political support, its details are still being finalized. There is also intense debate over whether the money can be spent on weapons made outside the EU.

At an EU summit on Thursday, several leaders, including German Chancellor Olaf Scholz, said the initiative should be open to like-minded partners outside the EU.

"It is very important for us that the projects that can be supported are open to... countries that are not part of the European Union but work closely together, such as the United Kingdom, Norway, Switzerland or Turkey," Scholz said.

But French President Emmanuel Macron, who has long advocated increasing European autonomy and boosting domestic industrial production, said "spending should not be directed towards a new off-the-shelf model that will again come from outside the EU".

To address gaps in Europe's critical capabilities - including air defense, missile strikes long-range, intelligence and targeting - “the method is to identify the best enterprises and companies that we have“, Macron added.

He also said that each EU member state would be asked to “review the orders to see if European orders can be prioritized“.

Diplomats in Brussels fear that the €150 billion initiative will be scuttled by the same arguments that delayed agreement on the European Defence Industrial Programme - a €1.5 billion fund - for more than a year. euro, which provides grants for defense.

Efforts to implement it stalled this winter after Paris demanded a limit on the share that could be spent on components from outside the EU and a ban on products with intellectual property protection from third countries.

Senior European Commission officials, tasked with preparing a detailed proposal in the next 10 days, have been asked to work closely with Paris, Berlin and other capitals to ensure the initiative is not blocked when it is presented to member states for approval.

Commission President Ursula von der Leyen said the loans, which will target seven key targets, including air and missile defense, artillery and drones, would “help member states pool their demand and buy together” and will provide "immediate military equipment to Ukraine".