Deregulation of economic imbalance relief fund… Preemptive response to U.S. demand for increased defense spending
At the ceremony commemorating the end of World War I held in Buddhism… British Prime Minister attends for the first time in 80 years since Churchill
Accelerating security integration in Europe in response to U.S. pressure
Major EU countries are increasing their defense budgets and strengthening military cooperation ahead of the return to power of U.S. President-elect Donald Trump, who has put strong pressure on the European Union (EU) to increase its share of defense costs throughout his administration. In particular, it was decided to relax restrictions on the use of the 392 billion euro (approximately 585 trillion won) ’cohesion fund’, which was set up to alleviate economic imbalances among EU member states, so that it can be used in the defense industry, etc., the British Financial Times reported on the 11th (FT). ) reported. As it became clear that President-elect Trump would drastically reduce U.S. support for Ukraine after taking office and put pressure on European countries to increase support for Ukraine, the EU also began making preemptive preparations.
During the presidential election campaign in February of this year, President-elect Trump said, “If North Atlantic Treaty Organization (NATO) allies do not increase defense spending, I will encourage Russia to invade these countries.” In August, NATO member countries bluntly criticized the current target of spending 2% of gross domestic product (GDP) on defense, saying it was too low and calling it “the theft of the century.” There is an analysis that the EU will also have no choice but to focus on ‘self-strengthening’ in order to welcome President-elect Trump and jointly respond to the threat from Russia.
● Restrictions on where the 585 trillion won solidarity fund can be used are lifted.
According to the FT, the European Commission has decided to convey to member states in the coming weeks a policy to “flexibly use cohesion funds in the field of defense and security.” The Cohesion Fund, which can spend 392 billion euros from 2021 to 2027, is so large that it accounts for about a third of the EU’s common budget. However, only about 5% of this is actually used, which has been criticized for failing to resolve the imbalance between member countries.
Accordingly, the EU changed the current rule that ‘cohesion funds cannot be used to support the armed forces of each country’ to increase the production of weapons and ammunition, strengthen military-related roads and bridges, and use so-called so-called “unmanned aerial vehicles (UAVs)” that have the characteristics of both weapons and general equipment, such as drones. It was decided to allow it to be used for investments in ‘dual-use products’. However, direct purchase of weapons and ammunition is still prohibited.
In particular, Germany, located in central Europe, must function as a transit route for the armies of major countries, but its infrastructure is seriously underdeveloped. As of 2022, the cost of immediate investment in outdated roads, railways, and bridges amounts to 156 billion euros (approximately 233 trillion won). If restrictions on the use of cohesion funds are lifted, it is expected to have a significant effect on improving military infrastructure in EU countries, including Germany.
Additionally, NATO member countries are seeking to steadily increase their defense budgets and spend more than 3% of GDP on defense. Currently, except for Poland and Greece, most of them are below 3%.
● England, Buddha attends World War I commemoration ceremony for the first time since Churchill… ‘Close to security’
Military cooperation and solidarity between major EU countries such as the UK, France, and Germany are also being strengthened. French President Emmanuel Macron and British Prime Minister Keir Starmer jointly attended the ceremony commemorating the 106th anniversary of the end of World War I in Paris, France, on the 11th and also held a summit meeting. This is the first time in 80 years that a sitting British Prime Minister has attended this ceremony since Prime Minister Winston Churchill in 1944, at the height of World War II.
The French President’s Office and the British Prime Minister’s Office said, “The two leaders agreed to provide unwavering support to Ukraine to stop Russia’s war of aggression against Ukraine.”
On the 23rd of last month, British Defense Minister John Healey and German Defense Minister Boris Pistorius also signed a defense treaty called the ‘Trinity Agreement’ at Trinity House in London, England. It is also the first time that two countries, who were enemies in both World Wars I and II, signed a defense treaty.
According to this treaty, German defense company Rheinmetall decided to build a factory in the UK and produce cannon barrels starting in 2027. They also decided to pursue joint development of new long-range guided missiles and new unmanned aerial vehicles. Both ministers expressed their intention to “do more to defend NATO against Russian threats.”
Reporter Yunjin Kim [email protected]
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The article discusses the increasing military cooperation and defense budget enhancements among major EU countries in response to U.S. President-elect Donald Trump’s administration. It notes that this comes as Trump has urged European nations to contribute more to NATO and strengthen their defense capabilities, particularly in light of decreasing U.S. support for Ukraine.
Key points include:
- Cohesion Fund Adjustments: The EU is relaxing guidelines on its €392 billion cohesion fund, previously aimed at reducing economic disparities among member states, to allow for investments in defense-related projects. While direct purchasing of weapons is still prohibited, the adjustments will facilitate infrastructure improvements and dual-use military investments.
- Infrastructure Needs: Germany, needing substantial investments to upgrade its military infrastructure, would benefit significantly from these changes. The estimated investment required to modernize outdated military-related transport is around €156 billion.
- Increased Defense Budgets: NATO countries are planning to raise their defense budgets, with a goal of exceeding 3% of GDP, although most member states currently spend less than that threshold.
- UK-French Cooperation: The article highlights a historic moment where British Prime Minister Keir Starmer and French President Emmanuel Macron attended the World War I commemoration together, emphasizing their commitment to supporting Ukraine and bolstering military collaboration. This marks the first attendance of a sitting British Prime Minister at the event since Winston Churchill.
- Defense Treaty Between UK and Germany: The article also outlines a recent defense agreement signed between the UK and Germany, facilitating collaboration on military hardware production and missile development, underlining the strengthening defense ties following a historical context of conflict.
these developments indicate a significant shift towards self-reliance in defense among EU nations, particularly in light of geopolitical tensions with Russia and changing dynamics in U.S. foreign policy.