Defense Commissioner is not ready to publish Eurobonds for the EU’s restructuring debt, he says
The European Union is currently not ready to publish Eurobonds to finance the expenses required to strengthen military power through the debt, but the EU Defense and Space Commissioner admitted in an interview with Andrius Kubilius.
Since the European authority has not yet understood how the member states will now repay the loans used for pandemic healing financing, they should look at other options listed in the recently recently launched “Reardm Europe/ Preparation 2030” plan.
Brussels is not ready to finance the defense preparation with EU debt
For now, EU countries are expected to use the already mentioned tools in the “Preparation 2030” plan instead of relying on common debt for military expenditures. Andrius Kubilius told Euronews that the block was not ready to give Eurobonds For this purpose.
Before discussions about the next multi -year financial framework (Mmf) The commissioner stressed that the European Union will have to spend a significant part of its long -term budget to repay the debt on the pandema unless there is any other solution.
The EU must first decide how to cover the debt caused by the Covid-19 recovery grants. Annual repayments are expected from 25 billion € to € 30 billion (over $ 32 billion), which has 20% of the EU’s economic production, which has 20% of the EU’s economic production.
Kubilius, a former prime minister of Lithuania and a former Prime Minister of the Conservative International Union Party of the country, said, “Eurobonds means that the European Union will have a greater debt that must be served again by all member states, and now there is a difficulty about how the current debt will repay it.”
Pic-https: //audovisual.ec.europa.eu/en/photo-details/p-066064~2f00-29
Andrius Kubilius, EU Defense and Space Commissioner, Brussels, 19 March 2025 (Source: EC Visual -Elixal Service)
European Commission (EC) open Earlier this month, the “Rearm Europe” plan and then the objections from Italy and Spain again after the “preparation 2030 yenikle re -branded. Prime Minister called for expanding the scope of the term in a way that covers spheres beyond the purchase of weapons such as cyber security, fight against terrorism, artificial intelligence and telecommunications.
The initiative aims to increase the defense capabilities of the EU member states and to expand military production on the old continent. The key goal is to take action up to € 800 billion for defense and security in the next four years.
The EU aims to 3.5% of the GDP defense spending target in member states.
Most of this total should increase the defense expenditures from member states to 3,5% of the gross domestic product (GDP) from member states. In order to achieve this, the Commission has submitted a series of bids, including loosening financial rules and withdrawing private capital.
“For the next four years, in a kind of idealist scenario, member states will begin to spend 3.5% of GDP, so the 2.4 trillion € spent for defense. The question is: Will it meet all the needs,” he said.
The remaining 150 billion € should be provided by a newly established financial loan vehicle named Safety for Europe ((TRUSTWORTHY). Second, it will allow the executive body in Brussels to export bonds to EU countries and borrow borrowing in the capital markets.
Within the scope of security, it requires at least 65% of the value of some items such as missiles, small drones and ammunition for the acquisition of EC, EU, EU, Free Trade Association (EFTA), European Economic Area (EEA) or Ukraine, where the war breaks down. Kubilius, “We want to encourage member states to spend more money on European production,” he said.
The Commission predicted that the European Union would need hundreds of billions of euros in fresh investments by the end of a decade in order to stay competitive on the global stage, fight climate change and meet increasing defense needs.
Last week, EC offered a plan to direct a part of € 10 trillion in the savings of citizens towards capital markets. Meanwhile, Germany’s economic power center, Germany, has removed the constitutional “debt brake” to borrow funds for infrastructure, climate and defense projects.
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