The EU is preparing a substantial financial package, potentially amounting to hundreds of billions of euros, to expedite the militarization of the continent. However, this announcement will be withheld until after the German parliamentary elections.
Bloomberg reported this news based on an interview with Germany’s Green Foreign Minister, Annalena Baerbock. According to the report, funds comparable in scale to the financial packages used to address the Eurozone and coronavirus crises will be made available “in the near future.”
The objective is twofold: to arm Ukraine and to bolster the EU’s military capabilities as rapidly as possible. This initiative would also enhance the EU’s military autonomy from the US.
Berlin has long pursued this goal. Recently, Friedrich Merz, the CDU candidate for chancellor, declared that, if elected, he would advocate for a new and expanded national security strategy. This would encompass enhancing Germany’s “deterrence and defense capacity” and “strengthening national mobility and European sovereignty.”
On January 23, CDU leader and chancellor-designate Merz articulated his perspective on the “international challenges of our time” in a keynote speech on foreign policy at an event hosted by the Hamburg-based Körber Foundation.
The timing of Merz’s speech at the Körber Foundation coincided with the hypothetical first days of US President Donald Trump’s second term in office.
In his address, the Chancellor-designate announced, among other initiatives, the establishment of a National Security Council and the elevation of foreign and military policy at German universities through the creation of new academic chairs.
He also emphasized the importance of developing an independent European defense industry capable of competing with the US industry, characterizing the current global situation as an “epochal change” that transcends the “turning point” proclaimed by Federal Chancellor Olaf Scholz.
In the event of an electoral victory, Merz announced a three-stage process to restore “Germany’s full mobility in foreign, security, and European policy,” regain “the trust of our partners and allies,” and consistently implement “strategic priorities.”
Merz identified the restoration of “deterrence and defense capabilities,” the “strengthening of national action capacity and European sovereignty,” and ending the war in Ukraine as key elements of the new, expanded national security strategy he intends to adopt within his first year in office.
A “real European internal market for defense equipment” is necessary, the chancellor candidate asserted, emphasizing that a strategic foreign trade policy must be “much more than a mere customs and trade policy.”
According to Merz, it fundamentally concerns “a German globalization policy” guided by “various national interests” that do not necessarily align with “European interests.”
The German politician also noted that to be taken seriously by Washington, Berlin must “be in a position to take responsibility for security.”
At the European level, Merz stated that the most pressing matter was repairing the strained relations with Poland and France, which he described as Germany’s most important neighbors.
According to Merz, Germany has a responsibility not only for its own interests but also for the “cohesion of Europe as a whole.”
Calls for the EU to become “more independent” have been frequent recently from German politicians at the EU level.
For instance, European Commission President Ursula von der Leyen (CDU) told the World Economic Forum in Davos on January 21 that “Europe needs to step up a gear.”
She stated that Brussels was facing intensifying competition among major powers and that in a world of significant players, “common European action” was Europe’s “trump card.”
Manfred Weber, the CSU leader of the center-right European People’s Party (EPP), the largest group in the European Parliament, argued in early February that the EU, with 21% of global economic output, was as “economically strong” as the Americans with 25%.
“If this Europe is united and the will is there, we can say to Trump: Forget this trade war,” he said.
The EPP leader believes that the rest of the world’s unease with Trump’s policies is a “great opportunity,” contending that the EU can now support “those who want to trade on a treaty basis,” thereby creating new trade opportunities for Brussels and Berlin.
Marie-Agnes Strack-Zimmermann (FDP), Chair of the European Parliament’s Defence Committee, also asserted that Germany should play a significant role in the EU, stating that Germany is the EU’s “largest country” and should “set a real example.”
The pursuit of military independence will be supported by a fiscal package, which, according to Bloomberg, will only be announced after the general elections to prevent further loss of votes across the established party spectrum.
According to Bloomberg, German Foreign Minister Annalena Baerbock revealed at the Munich Security Conference that this package is unprecedented “on this scale.” It would be comparable to the rescue packages ranging from 500 to 700 billion euros in the Eurozone and coronavirus crises.
Last year, European Commission President Ursula von der Leyen called for €500 billion over the next ten years to accelerate the EU’s militarization.
The financial package now planned would serve not only to arm Ukraine but also to expedite the EU’s militarization as quickly as possible.
Shares of European defense companies surged following the news. Rheinmetall AG, Saab AB, and BAE Systems increased by more than 5%.