EU considers tapping €93bn in unspent Covid recovery funds for defence

https://www.ft.com/content/f28bede4-0794-44c1-a216-9deccac44460?shareType=nongift

by UpgradedSiera6666

43 comments

  1. The European Union is considering channelling €93 billion in unspent pandemic recovery funds into its defence sector, a move aimed at boosting military spending amid growing concerns about US security commitments to the continent.

    According to multiple sources familiar with the discussion, quoted by Financial Times, this potential shift in funding priorities was highlighted by European Commission President Ursula von der Leyen during a meeting with the centre-right European People’s Party on February 19, per Caliber.Az.

    The EU’s defence sector faces an estimated €500 billion funding gap over the next decade. To address this, von der Leyen proposed repurposing regional development funds and exploring the possibility of “common European financing” for defence, as part of ongoing discussions with European officials.

    In recent months, European leaders have been weighing a proposal for an inter-governmental financing vehicle dedicated to defence, which could include participation from the UK and Norway. This approach would bypass the vetoes of neutral or Russia-friendly countries, who oppose using joint debt for defence purposes. The idea of pooling resources for defence has proven politically contentious,particularly in Germany, where the concept of EU-wide joint debt has sparked debate, especially ahead of federal elections on February 23.

    As an alternative, experts in the UK have suggested creating a “rearmament bank” modelled after the European Bank for Reconstruction and Development. The proposed bank would be capitalized by participating governments, who would contribute 10 per cent upfront towards an initial €100 billion fund, with the remainder borrowed from the capital markets, supported by a strong credit rating.

    Faced with a lack of agreement on new joint borrowing, EU capitals have pushed the European Commission to utilize the €93 billion in unspent recovery funds from its post-pandemic Recovery and Resilience Facility (RRF). This fund, part of the EU’s €800 billion stimulus package, was originally intended to help member states recover from the pandemic, but several capitals, including Berlin, insisted that joint borrowing would only be a one-off.

    However, tapping into the unused RRF funds would require amendments to its rules, which must be approved by a majority of EU countries and the European Parliament. If the plan goes ahead, the funds — distributed as loans — could be directed toward defence-related research and development or dual-use infrastructure, such as airports, that have both civilian and military applications.

    Additionally, the Commission is considering repurposing cohesion funds, typically allocated to the EU’s least-developed regions, to support the defence sector. A proposal from the Commission’s regional funds department, seen by Financial Times, suggests that investments in military research, technology, and defence production could now be eligible under cohesion policy as part of the broader industrial landscape.

    Von der Leyen also revealed that EU member states would be allowed to increase their national defence budgets without facing sanctions under the bloc’s fiscal rules, a measure intended to facilitate higher military spending across the region. This announcement was made during her address at the Munich Security Conference over the weekend.

    By Tamilla Hasanova

  2. Why wasn’t this done years ago? The fund was established directly after covid, and not even spent up. Now the war has been going on for years and we don’t have a similar fund for ukraine and we haven’t reallocated these funds yet?

  5. These politicians are gonna hold a bloody referendum if we should have a meeting about considering to shoot back if we get shot again after being shot…

    The Germans are gonna insist on firing a warning shot first….

    …and then Finally!!! 

    Oh wait, Hungary just used it’s veto. 

  6. Ukraine has received a total of 246.5b € in support over 3 years.
    That’s ~82.2b per year, combined, with US and everyone.
    EU has 93b€ just sitting there unspent from Covid…

    What are you even considering?
    That’s a whole year worth of support to Ukraine.
    Enough time for ruzzian donkey kings economy to collapse on itself.

    The are literally using donkeys to haul equipment, using logs from the forest to “armor” they vehicles.

    We can beat these terrorists with our leftovers when it comes to economy.
    Just grow the balls half the size of Ukrainian leaders and be done with it.

  8. Yes, this is needed urgently. But the conditions that lead to the growth of the extreme right across Europe, excessive housing costs, excessive costs of goods and services for individuals needs to come down. What is the point of increasing defence spending if there are fifth columnists like Hungary, Italy or others stabbing Europe in the back and siding with dictators? 

  11. Wait there’s $93 billion still kicking around from COVID?!

  14. That’s 620 euro fighters with some weapons.

    But I do wonder how the EU would spend it on defence. Could it be used to build the framework for Europe centric centralised defence?

  17. considering?…..fucking considering ???…..maybe we should run 2 year study to see if its a good idea?

  23. All this considering when action was needed 8 years ago. I guess it’s easier when further away from east flank…

  24. The time for consideration was 10 years ago. Now it is the time for doing.

    Fucken do it.

  25. The problem with all that thoughts that they are more than a decade late.

  28. How long are they going to be considering that? They have to do it yesterday! Time is not on our side because we wasted it all already.

  29. Just in time for the new Covid bat variant from China.

  31. They should subsidize drone hobbyists to the hilt. Drone racing clubs in every school, support for EU drone startups, ensure all relevant parts in the chain are made in the EU, ensure retail prices of EU made drones are competitive. Set aside parks for drone flying. Totally serious. Build expertise and widespread experience.

  32. Great now lets stop talking about unspent funds and frozen Russian assets and get to the point we invest said funds into innovation, infrastructure and jobs to make shit happen ffs. We have all we need to start, enough bs talk and make shit work!

  33. Germany made VERY bad experiences with moving money from a covid fund to another 😅

  34. i hope ot is legal. germany tried something similar with their leftover corona money, a court said no, and the government had a massive billion € hole in their spending plan

  36. WHY DO WE ALWAYS HABE TO CONSIDER SHIT LIKE THIS. FUCKING DO IT. GOD DAMMIT.

  37. Couple of hundred French ASMP medium range missiles with 300KT warheads should act as a deterrent.

  38. Well… its not like Covid as we know it is coming back. If something new comes I’m sure there will be new fund for that. Right now defense is what Europe needs so yes absolutely they should tap into it

  39. > unspent Covid recovery funds for defence

    Call out **the instigators**
    Because there’s something in the air
    We got to get together sooner or later
    Because the revolution’s here
    And you know it’s right
    And you know that it’s right
    We have got to get it together
    We have got to get it together now
    Lock up the streets and houses
    Because there’s something in the air
    We got to get together sooner or later

    # The Instigators

    Payback…

    Russia trolls ‘spreading vaccination misinformation’ to create discord
    **24 August 2018**

    https://www.bbc.com/news/world-us-canada-45294192

  42. Why is 93 billion of unspend funds just sat there doing nothing for like 3 years?

  43. Considers? Just do it. Send some of it here to Czech Republic, we’ll make you some nice tools. And Germans can make us some nice tanks. And let’s get Brits back and help them build some submarines.

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