Dispute Over 150 Billion Euro EU Defense Initiative

According to a report on March 8 (local time), a proposal to inject 150 billion euros into the EU's defense industry has become a new flashpoint in the long - standing dispute between two major EU countries over European rearmament and whether it should cover countries outside the EU.

Last week, the European Commission proposed raising 150 billion euros, which would be lent to national governments to boost their military production. While the general idea has won political support, the specific details are still being filled in, and there is intense lobbying over whether the funds can be used to buy weapons made outside the EU.

At an EU special summit on March 6 (local time), several leaders, including the German Chancellor, said the initiative should be open to like - minded partners outside the EU. The Chancellor said, "It's very important for us that the projects supported by this money should be open to... countries that are not in the EU but cooperate closely with us, such as the UK, Norway, Switzerland or Turkey."

However, the French President, who has long supported increasing European autonomy and revitalizing domestic industrial production, insists that the funds should not be used to purchase new non - European equipment. He added that for the deficiencies in Europe's key capabilities (including air defense, long - range strikes, intelligence, reconnaissance and positioning), "the way is to tap into the best businessmen and companies we have." He also said he would ask each EU member state to "re - examine orders to see if European orders can be prioritized."

Diplomats in Brussels are worried that this 150 - billion - euro initiative could be hindered by the same kind of debate that delayed the agreement on the European Defense Industry Program (a 1.5 - billion - euro defense fund) for more than a year. Previously, the implementation of that program stalled after Paris demanded restrictions on the proportion of spending on components from outside the EU and a ban on importing products protected by intellectual property rights from third countries.

Senior officials of the European Commission, who are responsible for drafting a detailed proposal in the next 10 days, have been urged to closely liaise with the governments of France, Germany and other countries to ensure that the proposal will not be blocked when submitted for member states' approval.

"There's still a lot of work to do in this area. There was no such proposal a week ago, and now it needs to be ready in less than two weeks," an EU official said, adding that all parties will have to make some compromises.

The Polish government, which currently holds the rotating presidency of the EU and presides over EU ministerial meetings, will face pressure to quickly reach an agreement. Although the initiative may be approved by a majority of the 27 EU member states, as the precedent of the European Defense Industry Program shows, even if France might be outvoted, its support is considered crucial.

"We're at a stage where we need to solve this problem in the name of speed, not perfection," an EU diplomat involved in the negotiations said. "But if we weren't willing to push through the 1.5 - billion - euro European Defense Industry Program over France's objections, how can we expect to do so on a 150 - billion - euro issue?"

The European Commission declined to comment on the report. The report also pointed out that in the face of the threat from the US President to end decades of US protection for Europe, Europeans have been alarmed and have promised to significantly increase defense spending, for the first time since the end of the Cold War, vigorously boosting their dwindling defense capabilities.

On March 4 (local time), the European Commission proposed an initiative - "ReArm Europe", aiming to enhance the defense capabilities of European countries and strengthen military support for Ukraine. As part of this plan, the European Commission proposed providing about 150 billion euros in new joint borrowing to EU national governments to build pan - European defense capabilities in areas such as air defense systems, artillery systems, drones and counter - drone systems.