White Papers for European Defense Readiness 2030: Ok, but What's Next?
On March 19, the President of the European Commission, Ursula von der Leyen, endorsed the objective of rearming the European Union by announcing a "White Paper for European Defense with a 2030 Readiness Horizon."
This white paper identifies 7 priority areas to build a robust European defense: air and missile defense, artillery systems, ammunition and missiles, military mobility, AI, Quantum, Cyber & Electronic Warfare, Strategic enablers, and critical infrastructure protection.
In parallel, the European Commission launched the ReArm Europe plan with a spending target of 800 billion euros by 2030. This increase in funding is welcome. The white paper reminds us that although the military expenditures of EU member states have increased by 31% since 2021 to reach 1.9% of European GDP, this remains far lower than US spending and especially below that of China and Russia. The ReArm Europe plan identifies 5 pillars on which to act immediately and significantly:
1. A new, dedicated financial instrument to support Member States’ defense investments.
Given the urgency, the Commission proposes a new EU regulation under Article 122 of the Treaty on the Functioning of the European Union to provide Member States with loans backed by the EU budget. With up to EUR 150 billion, the Security and Action for Europe (SAFE) instrument will strongly support a significant increase in Member States’ investments in Europe’s defense capabilities, now and over this decade.
2. The coordinated activation of the National Escape Clause of the Stability and Growth Pact.
The Commission Communication on Accommodating increased defense expenditure within the Stability and Growth Pact proposes the coordinated activation of the National Escape Clause by all Member States to unlock additional flexibility for higher defense expenditure. A period of four years, extendable, is considered. Thanks to this flexibility, Member States could mobilize additional defense expenditure of up to 1.5% of GDP.
3. Making existing EU instruments more flexible to allow greater defense investment.
4. Contributions from the European Investment Bank.
It will double its annual investment to EUR 2 billion to fund projects such as drones, space, cybersecurity, quantum technologies, military facilities, and civil protection.
5. Mobilizing private capital.
Access to finance remains a major concern for 44% of defense SMEs, which is much higher than for civilian SMEs. They have fewer opportunities than in the US or the UK, and US investors represent 60% of the total.
At Empower Europe, we support this clear discourse in favor of the military rearmament of the European Union. However, we remind you that even if financial figures are important, the moral rearmament of the European Union and its peoples, long lulled by the myth of the end of history, must also be integrated into the white paper. It is currently not sufficiently taken into account.
Empower Europe will closely monitor the execution of this white paper and the ReArm Europe plan and will share the progress with you. Here are the main upcoming steps by the end of the year:
By the end of April 2025, Member States are invited to request the activation of the National Escape Clause.
Next, the Council is invited to adopt the proposed draft Regulation on Security and Action for Europe (SAFE) as a matter of urgency.
Before summer, the European Parliament is invited to adopt the European Defence Industry Programme (EDIP), including its Ukraine Support Instrument (USI).
In parallel, the Commission will promote the integration of the Ukrainian defense industry into the Single Market, support the extension of military mobility corridors into Ukraine, and explore Ukraine’s access to EU space-based governmental services.
By June 2025, the Commission will present a Defence Omnibus Simplification proposal.
