Germany and the Netherlands opposed an increase in EU defense funding

Germany and the Netherlands disagree with calls to make progress on funding options to increase EU defense spending. This prevents the agreement at the summit in Brussels on a strategic agenda for the next five years, which includes the goals of strengthening security and defense.

This is reported by RBC-Ukraine with reference to Bloomberg.

German Chancellor Olaf Scholz supports reservations about increasing joint spending to cover gaps in the bloc's capabilities, according to the publication's sources. Bloomberg attributes this to problems in Germany's domestic budget.

At an EU summit that began on Thursday, leaders were surprised that, in the midst of Russia's war against Ukraine, Germany, and the Netherlands are not agreeing to a call to make progress on financing options to increase spending instead of discussing how to scale up and speed up the defense build-up.

During the heated discussion, some leaders, in particular Denmark and Poland, noted that it was good that neither the representatives of Russia nor the President of Ukraine, Volodymyr Zelenskyy, were in the hall.

Scholz can count on the support of Dutch Prime Minister Mark Rutte to block any progress on funding. Both are fighting against additional European resources, including joint debt, before other options are exhausted.

According to one EU diplomat, the stance of Rutte, who will become the next NATO secretary general, on delaying progress on funding is shocking, given his next post. Before agreeing to the use of European funds, The Hague wants a clear assessment of needs, an improvement of the internal defense market, better procurement, and easier access to private capital.

However, EU diplomats believe that Germany's opposition will not put an end to discussions about how to increase the bloc's defense capabilities against the background of Russia's invasion of Ukraine and the growth of geopolitical risks.

After exchanging views on Thursday, the leaders agreed to ask the bloc's executive body to present options for public and private funding to strengthen the defense industry and close critical gaps.

Germany does not want to see any new defense and funding announcements beyond what was agreed at a previous summit of EU leaders in March, arguing that there are currently no new developments that would merit changes, the paper's sources said.

Author - Serhii Kolomiets, 28/06/2024