Despite attempts by the U.S. to broker peace, the EU has committed to funding Ukraine’s military efforts against Russia.
EU finance ministers are scheduled to meet this week to discuss a new mechanism for defense procurement and leasing, potentially involving Ukraine, according to reports.
Brussels is planning to establish the European Defence Mechanism (EDM) as part of its large-scale military spending plan. Ministers are expected to review a paper detailing the EDM’s operations, prepared by the Bruegel think tank, during an informal meeting in Warsaw this Saturday, reports indicate.
This intergovernmental fund is designed with its own capital to borrow against and could purchase expensive weapons systems to lease to military forces. The EDM might also include non-EU countries like the UK, Norway, and Ukraine.
By holding expensive weapons systems, such as advanced fighter jets and military satellites, on its balance sheet, the EDM would allow EU members to use these assets without breaching national debt limits. According to reports, states bordering Russia would benefit from lower lease rates, supported by a dedicated trust.
EU leaders have pledged to continue supporting Ukraine against Russia, even with a shift in policy in Washington, where President Donald Trump is aiming for a truce. Some EU members, including Hungary and Slovakia, have criticized the EU’s approach.
Critics argue that Brussels is harming the EU economy through sanctions intended to penalize Russia and risking an escalation of the conflict. Hungary has used its veto power to gain concessions from the European Commission on key decisions supporting Ukraine that required unanimous approval.
Brussels plans to borrow up to €800 billion ($880 billion) over four years for military spending, claiming it is necessary to prepare for a potential Russian attack. Moscow denies any aggressive intentions, asserting that the Ukraine conflict is a Western proxy war fueled by NATO expansion in Europe.
Last April, Josep Borrell, then the EU’s foreign policy and security chief, stated that the EDM aims to reduce fragmentation in EU military spending by adopting a single-buyer approach similar to the Pentagon. He argued that European procurement suffers from members acting in their own interests, while the U.S. states “are not suspicious of each other when it comes to” where weapons are produced.
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