As Europe faces an increasingly volatile geopolitical landscape, the need for a strong, unified approach to defence funding has never been more urgent. In response to a request from the upcoming Polish Presidency of the Council of the EU and at a time of escalating security threats, the European Economic and Social Committee (EESC) has adopted an opinion calling for decisive action: strengthen EU defence through substantial investment in modern systems, deepen cooperation with NATO, and secure increased funding within the broader EU financial framework.

The European security context is rapidly evolving, with new risks emerging from multiple fronts. The Russian invasion of Ukraine has exposed vulnerabilities at Europe’s borders and highlighted the EU’s dependence on external defence suppliers. Mario Draghi’s report on EU competitiveness reveals that 78% of the EUR 75 billion spent by EU countries on defence procurement between June 2022 and June 2023 went to non-EU suppliers. This reliance underscores the urgency of strengthening Europe’s Defence Technological and Industrial Base (EDTIB) to reduce external dependencies and foster self-sufficiency.

‘The EU’s defence funding mechanisms must be overhauled to meet contemporary challenges,’ explains EESC rapporteur Marcin Nowacki. ‘Existing budgetary rules limit military spending, and while initiatives like the European Defence Fund (EDF) and the European Peace Facility (EPF) represent progress, they remain insufficient to address the scale of the current threats.’

A key message in the EESC opinion is that efforts must be made to address the urgent need to enhance EU defence capabilities. The EU must invest in modern defence systems, both military and civil, to effectively respond to emerging threats. A central focus must be on strengthening the EDTIB, which will reduce dependence on external suppliers and foster innovation within the EU.

Cooperation and interoperability

As the EU seeks to boost its defence capacity, deepened cooperation with NATO is essential. The EU must ensure complementarity and interoperability with NATO’s strategies, creating a cohesive security framework. By integrating resources and capabilities, the EU and NATO can address shared security priorities while promoting peace and human rights.

Joint procurement mechanisms such as the EPF and the ‘European defence industry reinforcement through common procurement act’ (EDIRPA) are crucial for maximising resource-efficiency and overcoming production bottlenecks. Scaling up these initiatives will ensure that critical defence capabilities are developed and deployed efficiently. Partnerships with third countries, particularly in cyber and space security, are also vital for enhancing Europe’s readiness for emerging threats.

The IRIS2 initiative to develop a secure satellite communication system, is highlighted as a key investment in strengthening the EU’s defence and cybersecurity capabilities, particularly in an age where digital and technological threats are rapidly expanding.

Funding

The EESC stresses that defence funding should be integrated into a broader financial framework, and notably into the next multiannual financial framework (MFF). It also argues, however, that it is of crucial importance to allocate additional resources for defence without compromising other essential EU priorities, such as social cohesion, the green transition, and economic resilience. Furthermore, public awareness campaigns should educate citizens on the vital role of defence funding in safeguarding Europe’s peace, security, and democratic values.

Strategic investment and innovation

Ultimately, the EU’s ability to protect its citizens and uphold its values depends on investing in and innovating its defence sector. Strengthening the EDTIB and creating a more resilient funding mechanism are vital steps toward ensuring the EU’s security in the face of interconnected threats.

Europe’s defence policy must be part of a broader, long-term strategy emphasising resilience, independence, and innovation. By continuing to invest in both military and civil defence, the EU can ensure its strategic autonomy and address the complex security challenges of the 21st century.