fbpx

The EU White Paper: More Debt for Defense and a New European Strategy

Politics - March 23, 2025

A few hours before the European Council meeting in Brussels, the European Union takes a further step towards strengthening its common defence.

The presentation of the White Paper on Defence marked a turning point, with the European Commission led by Ursula von der Leyen introducing the possibility of exceeding the spending limits established by the Stability Pact to finance investments in the military sector.

The core of the proposal lies in the activation of the so-called “safeguard clause”, which allows member states to obtain derogations from the strict rules of the Stability Pact. This measure would allow extraordinary resources to be allocated to defence, unlocking up to 650 billion euros of additional investments over the next four years. The European Commission has asked national governments to activate these derogations by the end of April, with the prospect of an evaluation by the community executive by June and final adoption by the European Council by July. The message is clear: Europe must strengthen its defence capacity quickly and on a large scale.

The Italian Minister of Economy, Giancarlo Giorgetti, stressed the need to clarify the duration and scope of this measure, highlighting that investments in defence have long-term effects on public finances. Antonio Missiroli, Senior Advisor at the Institute for International Political Studies (ISPI), also highlighted how this exemption represents an opportunity for countries with a high public debt like Italy. After years of requests for greater flexibility on fiscal rules, Italy could now benefit from a targeted exemption to strengthen its military capabilities. In addition to the safeguard clause, the White Paper proposes the establishment of a new financial instrument, with an estimated endowment of around 150 billion euros over three or four years. This fund would offer loans on favourable terms to member countries that invest in new joint defence projects.

This measure is part of a broader strategy to encourage cooperation between Member States in the production of weapons, military technological development and the strengthening of strategic deterrence. The Commission insists on the need to develop large-scale projects, promoting joint procurement to make the European defence industry more competitive globally. In a speech in Copenhagen, Commission President Ursula von der Leyen reiterated that the goal is to make Europe a credible military power by 2030. The “Readiness 2030” program aims to strengthen military logistics, the production of ammunition, the development of drones, air and missile defence. According to von der Leyen, the complexity and costs of these projects exceed the capabilities of a single State, making closer cooperation between Member States necessary.

The White Paper has reignited the debate on the possibility of a European army. Although the EU does not have a common military staff like NATO, the idea of ​​a joint force is gaining consensus. Missiroli highlighted that a formal EU army is not foreseen in the treaties, but some member states could decide to create a joint defence structure on a voluntary basis. With the White Paper on Defence, the European Union is taking a decisive step towards a more structured and ambitious military policy. The adoption of the safeguard clause and the establishment of new financial instruments could mark a turning point in Europe’s ability to guarantee its own security. However, questions remain about the long-term sustainability of these investments and the political will of individual member states to move towards greater integration in the defense sector. The road to a militarily autonomous Europe is still long, but the path seems to be mapped out. It will be essential that each member country be able to have the freedom to autonomously choose the terms of accession to the new European strategic plan. Common defence remains a priority, as must the definition of a stable and lasting international peace.

 

Alessandro Fiorentino