– EU member states bordering Russia and its satellite Belarus understand the threat facing the European Union better than anyone else – said the EU economy commissioner, Valdis Dombrovskis at the end of the informal meeting of the Ecin council responsible in the EU for economic policy, tax issues and regulation of financial services.
As Lithuanian added, “Warsaw is a very right place for the discussion of finance ministers about the EU increasing responsibility for its security by mobilizing significant investments in abilities and the defense industry – because Poland is a leader in the EU in such investments.”
Polish presidency in the EU. In order to finalize work on the “largest defense package”
In addition to the finance ministers of EU countries, the CEOs of central banks of EU Member States also participated in the EcoFin Council. It was chaired by the Polish Minister of Finance Andrzej Domański, who emphasized that the goal of the Polish presidency is to finalize work on the “The largest defense package in the history of” Union announced by the European Commission.
It comes, among others About the plan of remitarization of Europe, presented a few weeks ago by Ursula von der Leyen, on almost 800 billion euro various financial instruments.
Commissioner Dombrovskis referred to this package, reporting Warsaw's deliberations, at which he noted, there was broad consent that Europe must accept greater responsibility for its defense. One of the main topics of conversations was the coordinated use of the so -called overall output clause in the stability and development pact.
EU defense. Great loosens of the debt brake
The use of the clause will allow EU to increase defense expenditure without automatically launching the excessive deficit procedure – that is, the EU will not impose penalties for too much debt if these expenses are intended for defense.
According to Dombrovskis, it is crucial for the Member States – most of which, as it turned out in today's discussion, considers the activation of the clause – they did it in a coordinated way. Today, the European Commission called on EU members to submit to Brussels Applications on this matter until the end of April.
– This is not the final date, but the date to serve coordination – assured the Commissioner and added that the EC is ready for a quick analysis of applications, accepting guidelines and presenting them to the EU Council in July – because this is the administrative path in the case of a clause.
The second issue on the wallpaper of the Warsaw meeting was an important part of the European remilitarization plan, i.e. the Safe Loan Instrument, which is 150 billion, was to serve as a source of financing of joint orders of military equipment, exposed to many EU countries. – The presidency wants a quick agreement on this instrument, probably already in May – announced Minister Domański.
The third issue mentioned by Dombrovskis was the improvement of the orientation of a private financing stream to the defensive sector, with the help of European Bank Investment and the Union savings and investments – i.e. strategies to expand the possibility of investing savings in capital market instruments by EU citizens and improving the accessibility of capital for enterprises, including small companies.
– We expect that additional defense expenses will also increase competitiveness and economic growth, stimulate innovations and create new jobs – said Commissioner Dombrovskis. He added that the Union “intensively is working on the diversification of trade with new and current partners” and is counting on reaching new markets for “the reviving European defense industry”. – Our allies and strategic partners around the world are looking for reliable suppliers – he added.
Trump's duties. The EU enjoys the latest US decision. “They are a mistake”
As part of the two -day EcoFin meeting, Eurogroup talks were also held, but EU countries from outside the euro area also took part, and the deliberations mainly concerned the effects of macroeconomic duties introduced by the United States.
“The ministers expressed the need to maintain a common and coordinated EU response, both through trade protection measures and diplomatic activities,” reads the Polish Presidency of the EU. Minister Domański emphasized that finance ministers “with satisfaction accepting the US administration decision to postpone the introduction of customs duties” by 90 days.
– We agree that customs are a mistake and will harm economic growth, consumers and enterprises on both sides of the Atlantic, but especially in the USA. (…) The EU will now stop its first remedy package to give a chance Good luck negotiations. However, all options remain on the table. If the results of the negotiations are not satisfying, remedies will come into force – announced Commissioner Dombrovskis.
Bruegel Report: How much will the EU will spend if the US releases the army from Europe?
A special Think Tank Bruegel analysis regarding the integration of the European defense market has also been prepared for the meeting of ministers. This report – a joint publication with the Kiloan Institute of World Economy (IFW) – analyzes the potential defense needs of Europe and their costs in the event of the withdrawal of American troops from Europe – both in the variant of the continuation of Russia's war with Ukraine, as well as a possible peace agreement and later the need to stop Russia.
When asked about the reaction of the ministers to the report, Minister Domański said that most of them “were very interested in him”, the more that the majority also believe that Europe's defense requires finding and the use of additional – in addition to the discussed remimitarization packages of Europe – tools. However, he did not specify what tools he could walk and he stipulated that the report was only a publication of an independent think-tank, and does not come from the Polish presidency. – I think that the informal council of EcoFin is a good place to present such a valuable collection of information – he added.
The European Commission is ready for further defense activities
Commissioner Dombrovskis assessed that the Bruegel report is based on the establishment of a coalition of volunteers, therefore one should consider what the role of the European Commission would be in such activities, but he admitted that such a formula allows even cooperation with countries outside the Union.
Asked whether the commission is ready in the area of defense for actions wider than the previous initiatives of Brussels, Dombrovskis admitted that yes – although these wider activities should not slow down the pace of work on those that the commission laid on the table.
– We see this awakening in Europe in terms of security. The position of some countries is different than a year or two years ago, and the readiness to incur larger expenses is higher – summed up the Commissioner.
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The article comes from the website Deutsche Welle