EU eyes creating EUR 8 billion military fund

Brussels bosses are pressing ahead with controversial €8bn plans for a European Union army despite the looming financial crisis brought on by the coronavirus pandemic.

But the military ambitions have been hit by budget battles, and two major defense projects have been earmarked for less funding than they were allocated two years ago. Officials see boosting defense capability as crucial to the bloc's ambitions for a greater geopolitical role and have ensured both programs feature in a revised seven-year budget.

Under the European Commission's plan, the new European Defence Fund (EDF), intended to foster cooperation on research and development of military technology and equipment, would receive €8bn.

That figure is a considerable drop on the Commission's 2018 proposal for the long-term budget, the Multiannual Financial Framework (MFF), which put aside €11.5bn for the fund.

But there is enough in the new plan for some supporters of a more significant EU defense role to see silver linings.

One senior EU diplomat said: "Financially, it's nothing and politically it's an important signal."

But others feel military spending should still take priority despite the coronavirus crisis.

Estonian defense minister Jüri Luik told politico.eu: "We should all be interested that neither national defense budgets nor defense-related spending in the next MFF — European Defence Fund and military mobility — take a hit.

"Military mobility is a flagship project for NATO-EU cooperation, and the EU has a crucial role in investing in Europe's strategic infrastructure.

"We believe there is room for restoring the Union's level of ambition."

Plans for an EU army are not embraced by all 27 member states with some concerned the efforts could end up duplicating NATO, and others are wary of a shift from soft to hard power in a union founded as a peace project.