EU has underinvested EUR 1 trillion in defense over past decades - Lithuania's Kubilius

  • 2024-11-07
  • BNS/TBT Staff

VILNIUS - EU member states' underinvestment in defense over the past decades has reached one trillion euros, according to Andrius Kubilius, commissioner-designate for defense and space.

"EU member states have accumulated significant underinvestment in defense - more than 1 trillion euros over the past decades. Such chronic underinvestment has left critical gaps in our capabilities and readiness," Lithuania's former prime minister said in his introductory statement during a three-hour grilling by members of the European Parliament on Wednesday evening.

Kubilius said that with the growing threat from Russia and the US shifting its focus toward China, Europe must be able to take care of its own security.

"Recent intelligence assessments suggest Russia may test the resolve of the EU or NATO by the end of this decade," the commissioner-designate said.

"Our adversaries and strategic rivals are rapidly outpacing us. Countries like Russia and China have seen much more substantial increases in their defense budgets than in the EU27 over the past two decades," he said.

"It looks like Russia in 2025, in purchasing power parity terms, will spend more on military needs than all the EU27 (combined) are spending on defense."

The veteran MEP also noted that the European defense technology market remains highly fragmented.

If confirmed, he promised to present a white paper on the future of European defense within his first 100 days in office.

EU SPACE LAW

The Lithuanian candidate said he sees the need for a systemic overhaul of European defense, based on close cooperation between the bloc's member states and NATO.

"There is no competition between NATO and the EU on defense issues, on the contrary," he said.

"The EU needs to use its unique budgetary and legislative powers to help develop the capabilities and resources needed for the implementation of NATO military deterrence and defense plans."

If confirmed as commissioner, Kubilius vowed to boost the production and demand for EU defense equipment by facilitating information sharing among the EU, member states, and NATO about defense resources and capability needs. This could potentially lead to a joint EU defense industry production plan.

He also spoke about the need for additional funding, long-term planning of funding, innovation, research, military mobility, and support for Ukraine.

Commenting on the EU's space policy, Kubilius warned that "our space industry's competitiveness is at risk" due to underfunding.

He promised to put forward an EU Space Law aimed at creating a "common space market and a unified system for space security, safety, and sustainability, ensuring a consistent and EU-wide approach".

'YOU CAN CALL ME COMMISSIONER FOR PEACE'

When asked how he would unite the political will of different EU countries to make changes in defense, Kubilius said that, above all, the threats facing the EU must be understood consistently across the bloc.

On defense funding, he underscored the higher commitments planned in the multiannual financial framework and said he hoped that the European Investment Bank (EIB) would take a more active role by changing its lending policy.

The EIB's current policy prohibits lending for military projects, but in April, following calls from EU leaders, the bank announced it would ease its rules for dual-use projects involving both military and civilian purposes.

European Commission President Ursula von der Leyen has said that the EU will need to invest an additional 500 billion euros in defense over the next decade. However, Kubilius has said that even more funds might be required.

"If all member states spent 2 percent (of GDP) on defense now, that's an additional 60 billion euros per year," he told MEPs.

He later emphasized that the 2 percent GDP target for defense is insufficient given the current geopolitical context.

The Lithuanian politician underlined that Europe needs to spend more on defense because of to the threat posed by Vladimir Putin, not because of the election of Donald Trump as US president. During his first term, Trump criticized European NATO allies for not spending enough on defense.

In response to questions from MEPs, Kubilius also commented on the proposed joint EU air defense shield suggested by Poland and Greece, noting that it could cost EU countries around 500 billion euros.

The hearing, which lasted just over three hours, was attended by MEPs from the two key main committees - Foreign Affairs and Industry, Research, and Energy - as well as members from the Transport and Tourism Committee and the Security and Defense Subcommittee.

However, some politicians took the opportunity not to inquire about Kubilius' potential work but to voice their opinions.

For example, Belgian politician Marc Botenga said, "For the first time in history, we won't have an employment and social affairs commissioner, but a militarization commissioner." He said that money will be funneled away from "schools and pensions" to fund "the multinational arms industry".

"You can call me commissioner for peace, not militarization," Kubilius replied, emphasizing that strengthening European defense is the best path to achieving peace.