Andrius Kubilius, the European Commissioner for Defense and Space, has outlined a plan to allocate €100 billion for defense in the EU’s next seven-year budget, according to an interview with Politico.
This proposal marks a tenfold increase from the current seven-year EU budget, which dedicates €10 billion to defense within a total budget exceeding €1 trillion.
Rebuilding the EU’s defense industry, which has faced decades of decline since the Cold War, requires substantial investment. European Commission President Ursula von der Leyen has also highlighted the need for an additional €500 billion in European defense spending over the next decade.
Kubilius acknowledged the challenge of securing these funds but stressed that without significant financial commitment, defense plans remain “theoretical.”
The proposed funding could be sourced through measures such as increasing the EU budget, issuing joint debt obligations, and relaxing regulations for institutions like the European Investment Bank. Kubilius also suggested revising EU fiscal rules that currently cap member states’ budget deficits at 3% of GDP and national debt at 60% of GDP, allowing for greater flexibility in defense expenditures.
