AIM Extra

Militarising Europe: The EU Defence Spending Bug

We live in dangerous times, and politicians are happy to be cheerleaders of that supposed fact. They do not care to reassure; they merely care to strike fear into hearts and feed the sort of pernicious despondency that encourages conflict. Hope is not a political currency worth trading. These days, fear is the bankable asset, easily cashed at a moment’s notice.

The March 6 meeting of the Special European Council was a chance for 27 leaders of the European Union to make that point. It was time to cash in on the Russia threat and promote a strategic vision that spoke of elevated dangers. It was, in other words, a good time to be throwing money at the militaries of the various member states.

The language was clear from the European Commission President Ursula von der Leyen, a figure who has become increasingly hawkish in pushing the barrow of the military-industrial complex. Announced on March 4, her ReArm Europe plan entails various measures intended to free up to EUR 800 billion in defence funding. A notable one is enabling member states to use the escape clause of the Stability and Growth Pact to bypass the Excessive Deficit Procedure. Without giving too much by way of details, von der Leyen claims that EUR 650billion of “fiscal space” could be created were EU countries to increase defence spending by 1.5% of GDP. So much, it would seem, for the bloc’s emphasis on fiscal frugality.

Another measure involves the provision of EUR 150 billion of loans to member states under Article 122 of the Treaty on the Functioning of the European Union (TFEU) that will go into such defence initiatives as air and missile defence, artillery, missiles, armed drones and anti-drone systems, and cyber security. But this is not all: this initiative is not only intended for European defence but aiding Ukraine and, it follows, prolonging the war.

Vague suggestions are also on the table. Von der Leyen babbles about “cohesion policy programmes” that might be used to increase military expenditure, with money drawn from the EU budget. Private capital will also be raised through the Savings and Investment Union and the European Investment Bank.

The five-point agreement that emerged from the summit was approved by 26 of the 27 members. (Hungary did not disappoint in vetoing the leaders’ statement). It spoke to such compulsory conditions as Ukrainian participation in peace talks, and European involvement on matters touching upon its security. “Ukraine’s, Europe’s, transatlantic and global security,” the statement pompously reads, “are intertwined”. EU funding in the order of EUR30.6 billion was also promised for 2025.

The move brings some unwanted attention to the workings of EU policy. Of interest here is the issue of using Article 122, an emergency provision that is non-legislative in nature and has been previously used in responding to the COVID pandemic and Russia’s invasion of Ukraine. In other words, it is an executive pathway that purposely bypasses the European Parliament.  

Resorting to the article in this instance did not impress Manfred Weber, who leads the European People’s Party (EPP) group in the Parliament. “Bypassing Parliament with Article 122 is a mistake,” opined Weber to his colleagues in the Strasbourg plenary. “Europe’s democracy stands on two pillars: its citizens and its member states, (and) we need both for our security.”

European Parliament president Roberta Metsola also urged EU leaders at the March 6 summit that, “Working through the European Parliament, especially on decisions of this magnitude, is a way of fostering trust in our union.” While “swift action” was needed, “acting together is the only way of ensuring broad and deep public backing.”

In a non-legislative resolution, 419 MEPs encouraged member states to, amongst other matters, increase defending expenditure by at least 3% of GDP, create a bank for defence, security and resilience and pursue a system by which European defence bonds might be used to pre-finance military investment. While these approving members thought Europe was “facing the most profound military threat to its territorial integrity since the end of the Cold War,” 204 chose to vote against it, with 46 deciding to abstain.  

In the process of reaching the final resolution, it is worth noting that certain MEPs from The Left and The Greens/EFA attempted to include an amendment that was rejected by 444 votes. “The Parliament,” it read, deplores the choice to use Art. 122 […] for the new EU instrument meant to support members states defence capabilities; expresses deep concern for being excluded from decisional process.”

While the March summit suggested a new turn towards bellicose militarism, the trend is unmistakable and troublingly inexorable: Europe is spending more on defence, and was doing so even before the return of Donald Trump to the White House. In 2024, military budgets increased by 11.7% in real terms, with a number of countries reaching the target of 2% of GDP expenditure agreed by NATO members in 2014. Throughout Europe, the merchants of death, an eloquent, accurate term coined in the 1930s, can only be crowing.

 

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Dr Binoy Kampmark

Dr Binoy Kampmark is a senior lecturer in the School of Global, Urban and Social Studies, RMIT University. He was a Commonwealth Scholar at Selwyn College, University of Cambridge. He is a contributing editor to CounterPunch and can be followed on Twitter at @bkampmark.

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