Polish presidency urges EU's loan scheme for defence spending
Polish finance minister Andrzej Domanski has called for an urgent agreement on loans for defence spending during the informal meeting of his European Union counterparts hosted by Warsaw as part of Poland's presidency of EU council.
Saturday saw the second day of talks of Ministers for Economic and Financial Affairs and Central Bank Governors (ECOFIN) from all member states, focusing on funding European defence spending.
On March 12, the European Parliament backed the ReArm Europe programme to mobilise close to EUR 800 billion for a safe and resilient Europe. As part of the plan the European Commission has proposed a joint borrowing programme totalling EUR 150 billion, dubbed SAFE (Security Action for Europe), for member states to use for defence purposes.
Following ECOFIN's Saturday meeting, Domanski told a press conference that Eastern European countries are investing a lot in defence and security, with Poland spending almost 5 percent of GDP on this purpose.
"We believe that security is a common European good and that it is time to take greater responsibility for the security of Europe," he said.
"We thank you for the largest package of this type in history," Domanski said referring to ReArm plan, but our goal is to finalise the work urgently."
"As for the SAFE instrument, the presidency wants a quick agreement, perhaps in May," he added.
EU Trade Commissioner Valdis Dombrovskis told reporters that in the current geopolitical situation, the EU is ready to take greater responsibility for security and wants to support defence investments until 2030.
He added that that the EUR 800 billion package could significantly change the situation in terms of EU defence capabilities.
Dombrovskis also said that member states can now submit applications for national exit clauses, whereby they will not have to maintain the fiscal rules resulting from the EU treaties, which will allow for a rapid increase in defence spending.
Domanski said that next week he will talk to representatives of several countries interested in "this option". "Coordination is key for us," he said.
During the meeting, a report by the Brussels think tank Breugel was presented, which proposes the creation of an intergovernmental fund by EU and non-EU countries, with paid-in capital, that would borrow on the market, and jointly buy and own military gear.
Dombrovski said that EU is open to considering this option. He added that such a solution would not require unanimity and that it would enable agreement with like-minded countries outside the EU. (PAP)
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