BRUSSELS — In a decisive call to action, Ursula von der Leyen, the President of the European Commission, urged EU governments to utilize the proposed €150 billion in loans aimed at enhancing the continent’s defense capabilities to purchase from European defense manufacturers. During a session with lawmakers on Monday, she emphasized the importance of investing in the bloc’s own defense industry.
“These loans should finance purchases from European producers to help boost our own defense industry,” von der Leyen stated. “The contract should be multiannual to give the industry the predictability they need. And, finally, there should be a focus on joint procurement,” she added.
The Commission is set to unveil a legislative proposal concerning this new financial mechanism at the upcoming European Council meeting scheduled for March 20.
Support from member states
France has been particularly supportive of integrating ‘Buy European’ clauses into the EU’s defense strategy, viewing this initiative as crucial for strengthening national production across member states. French Finance Minister Eric Lombard stressed the necessity of ensuring that these funds are allocated to purchase European products, stating, “It’s very important that the funds are used to buy European products.”
Other EU nations have also expressed concerns regarding dependency on U.S. military production. Swedish Finance Minister Elisabeth Svantesson highlighted the implications for security, commenting, “There’s a question of security and not being dependent on other continents.”
Broader economic implications
By promoting the use of EU loans to support European procurement, the initiative aims to address resistance from those who fear that military funding could overshadow other pressing economic and social issues. Von der Leyen articulated that this approach would yield beneficial effects for the broader economy, asserting, “This will also have positive spillovers for our economy and our competitiveness. It will include new factories and production lines here in Europe.”