EU countries should buy military equipment manufactured in Europe with funds from the new loan program designed to support the continent's security, European Commission President Ursula von der Leyen said today, quoted by the Associated Press, BTA reports.
The agency notes that the majority of defense goods for the continent currently come from American suppliers.
At the summit last week, EU leaders considered the European Commission's proposal for new debt worth 150 billion euros. The funds are expected to be used to buy air defense systems, drones and "strategic factors" such as air transport, as well as to strengthen cybersecurity.
"These loans should finance purchases from European manufacturers to help our own defense industry," von der Leyen told MEPs.
"The contracts should be multi-annual to give the industry the predictability it needs," she said. and it should be a priority for countries to buy equipment together and collectively, “because we have seen how powerful (a tool) this can be“.
European NATO countries have in recent years given about two-thirds of their orders to American companies, but were forced to take action after warnings from the Donald Trump administration that in the future they will have to be responsible for their own security, as well as that of Ukraine, the AP notes.
France wants the Commission to allocate more money for debt and also insists that the funds should be spent only in Europe. Spain, one of five eurozone countries with debt levels above 100% of GDP, wants the money to be provided as grants rather than loans.
At a summit later next week, EU leaders are expected to approve the debt assumption, which the Commission believes will benefit around 20 member states whose spending would be higher if they took out their own loans.
The debt assumption is part of a package of measures that includes easing budget rules on defence spending and redirecting EU funds, with which the Commission hopes to provide up to 800 billion euros for security priorities.