The Minister of Economy, Commerce and Business, Carlos bodyhas proposed this Saturday the creation of a common financial instrument in the European Union (EU) for strengthen security and defense.
This has been expressed by body within the framework of an informal meeting of EU Finance Ministers (ECOFIN) in Warsaw and in which he has influenced that he conceives this proposal as a transient solution until the defense is fully integrated into the community budget.
“The proposal not only intends to increase spending immediately, but Use these resources more efficiently coordinating the security needs of the continent “has apostilled body, while from the Ministry they have framed in a statement that it is based on the White Paper of the European Commission and on the plans presented by other countries to create multilateral mechanisms in the long term that strengthen the security and defense capacities of Europe.
In this way, it has been influenced that the instrument would be a Practical and rapid response to “unprecedented security threats” faced by Europe.
Subsidies and loans
Entering detail, it has been specified that the instrument would provide subsidies and loans to finance large -scale European projects And, at the same time, it would cover the capacity of capacity through joint acquisition, while the research, technology and innovation in defense would be stimulated that ensures interoperability.
On its design, it has been deepened that it is a temporary special purpose vehicle under the premise of being easier and faster to establish in the short term to build a competitive European security and defense industry.
Financing sources
Regarding the sources of financing of the instrument, it has been exposed that it would be funded by contributions from Member States and open to members not belonging to the EUbeing able to complement each other by voluntary contributions.
On your side, additional financing should come from the JOINT EUROPEAN DEBT ISSUEas well as existing sources of financing, such as the European stability mechanism (MDE). Precisely, from the Ministry it has been argued that the use of MDE would reduce the dependence of the Member States in the financing of the market to finance the defense.
On the other hand, the possibility of more than 200,000 million euros in Russian assets immobilized by the EU as a result of international sanctions could be used in Ukraine defense support.
“This is the moment of European solidarity to support Ukraine and the countries of the first line on the eastern flank. We need to invest together in defensewhich is a genuinely European public good that benefits our citizens and reinforces our economic security, “said body.
