European Council President: We have decided to mobilise additional public, private funds for our defence
We have decided to mobilise additional public and private funds for our defence, European Council President António Costa told a briefing in Brussels after a March 6 special meeting of the European Council.
The meeting was called against the background of Trump administration policies on Ukraine and Russia, and to discuss continued support for Ukraine and European defence. The European Council stresses the need to continue to substantially increase expenditure on Europe’s security and defence, according to the official conclusions of the special summit.
“Today marks a defining moment for Europe,” Costa said.
“For the security of Europeans. A month ago, we had a strategic brainstorming to guide our common action on defence. And today, we are delivering – we are moving decisively towards a strong and more sovereign Europe of Defence,” he said.
Costa said that the EU leaders had decided to invest in priority areas already defined by the European Defence Agency, reflecting the lessons learnt from the war in Ukraine, and in full coherence with Nato: air and missile defence, artillery systems, missiles and ammunition, drones and anti-drone systems, strategic enablers, military mobility, artificial intelligence, cyber and electronic warfare.
“Second, we have decided to mobilise additional public and private funds for our defence,” he said.
“We will create a new European instrument, up to 150 billion euro to support member states in boosting the defence capabilities that are urgently needed.”
He said that EU leaders at the March 6 summit were “clear that we need flexibility within the Stability and Growth Pact”.
“Because member states will invest much more in defence – and our common fiscal rules need to allow them to do so. In a sustained and sustainable way.”
Flexibility in channelling existing European funds to defence will also be important – for those member states that choose to do so, Costa said.
He said that the European Investment Bank’s initiative to broaden its mandate – for more loans to the defence sector – will improve access to private financing, and have a positive effect on private banks.
“We decided to invest better and more efficiently together. With joint procurement. Through standardisation and simplification,” Costa said.
A stronger European defence also provides deterrence for Ukraine, he said.
“Our efforts to strengthen European defence will also benefit Ukraine. Because Ukraine’s security is at the core of Europe’s security.
“We have been with Ukraine since day one. We have already provided more than €135 billion in support to Ukraine since 2022. Our support is unwavering. If the war continues. In any future peace negotiations. In reconstruction. In accession to the European Union,” he said.
“And we have now committed to increasing our support even more.”
Immediately, member states can increase their support thanks to the increased fiscal space, Costa said.
He said that several EU member states had already announced their pledges up to 15 billion euro.
“Today, we have also tasked the Council to work urgently on further initiatives to address Ukraine’s pressing military and defence needs.
“At the same time, we are preparing to support Ukraine for when it decides to engage in negotiations. To help it reach a positive outcome, that means a just and lasting peace,” he said.
This is a tipping point for Europe, Costa said.
“And today, we have shown that the European Union is rising to the challenge. Building the Europe of Defence and standing with Ukraine, shoulder to shoulder. Because, at the end of the day, what we all want, what we all deserve, what we are all working for, is peace and security.”
(Photo: Council of the EU)
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