EU spends insufficient funds on defense - European Court of Auditors.

European Court of Auditors stated about the insufficient EU budget for defense industry

The planned European Union budget of 1.5 billion euros for the development of the defense industry is insufficient in the face of challenges related to the Russian threat and the war in Ukraine, announced the European Court of Auditors.

"The proposed 1.5 billion euros, as well as the two-year period for their expenditure, may not allow achieving the ambitious goals set by the European Commission," is emphasized in the final document of the court, which plays a monitoring and advisory role for EU institutions.

Earlier in March, the European Commission proposed a new defense strategy aimed at supporting the arms industry, European companies are trying to meet the demand, especially for Ukraine's needs.

"The Ukraine support instrument, which is part of the proposal, does not have a fixed financial package. EU member countries agreed to use profits obtained from investing frozen Russian assets to support Ukraine. However, there is a risk, given the unpredictability of volumes and timing of funding from this source," the conclusion states.

The figure of 1.5 billion euros over two years is called "significantly insufficient".

"The EU legislative proposal to enhance defense-industrial readiness requires a more robust design. It is also necessary to find the right balance between policy goals, the proposed budget, and timelines," stated Marek Opioła, a member of the court responsible for this conclusion.

Some European countries, such as France and Estonia, advocate the launch of a large European loan to address the funding shortfall. They propose creating a separate fund, as was done during the COVID-19 pandemic. But several member states, including Germany and Sweden, are opposed.

Source: Ukrinform