The issue of common funding is once again on the table of the Europeans now requiring tangible actions and consents making the EU a strong player.
Ursula von der Leyen was once again clear in saying yes to common funding for common European projects, which however, as she explained, requires political will.
“Common funding will be needed for some common European projects. The issue now is to define these European projects, you (Mario Draghi) talked about defense, you talked about cross-border energy networks. What we need to do is look at the political will to have these common European projects and determine how to finance them through new national contributions or new own resourcesexplained the president of the Commission.
In his report on competitiveness, Mario Draghi underlines that project-specific joint funding will be key to maximizing productivity gains, specifically related to cutting-edge research and infrastructure to integrate AI into the economy .
At the same time, he adds, there are other public goods such as investment in networks and interconnections and the financing of joint procurement of defense equipment and defense research and development that will present deficiencies and gaps without joint action and funding.
The first discussions
Regarding defense, before the European elections Kyriakos Mitsotakis and Donald Tusk had sent a letter to Ursula von der Leyen to promote the creation of a common EU air defense shield. In the same line, the president of the Commission had emphasized the need for Europe to improve its defense industry but also the promotion of joint projects in the defense sector, such as “air defense shield for all”.
But also in the conclusions of the June Summit, the message was clear: proposals are needed, which will take shape in the term that is just starting.
“The European Council calls on the Commission and the High Representative to present developed options, to be discussed by the Council, for public and private funding to strengthen the defense technological and industrial base and address gaps” the “27” reported.
The basic questions that demand answers and the resistances
As a European source explains, the issue is not simple. Joint funding projects need to be determined, then when it comes to something defensive for example, where will the headquarters be, what will be the range and finally the amount needed will be considered where it will come from.
Of course, the negotiations are not expected to be easy since the resistances of the “known suspects” of Germany, the Netherlands, Sweden and Finland remain. A step back seems to be Denmark, which is in favor of common funding when it relates to defence.
Now, in the defense sector, Ursula von der Leyen is expected to appoint a commissioner in charge of defence, who, in collaboration with other commissioners, is called upon to promote the independence of the EU through the development of the defense industry which is under the Commission’s competences.
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