EU defence chief says Eurobonds unsuitable for military funding

Brussels (Eurotoday) – European Commissioner for Defence and Space Andrius Kubilius stated that the European Union is not yet prepared to issue Eurobonds to enhance defence capabilities necessary to deter potential military aggression against the bloc.

In an interview with Euronews, he remarked:

“Eurobonds mean that the European Union will accumulate greater debt, which will need to be serviced collectively by all member states. At present, we are already facing challenges in repaying existing debt.”

“The preparations for discussing the next Multiannual Financial Framework (long-term EU budget) indicate that if we do not find another solution, a significant portion of the next MFF will be allocated to repaying pandemic-related debt.”

He elaborated.

The Commissioner expressed his expectation that member states will utilize the financial tools and options already made available under the “Rearm Europe” initiative, now rebranded as ‘Readiness 2030.’

“Regardless of whether you use loans or bonds (grants), ultimately, someone will have to bear the cost. That is why we should not resort to bonds before addressing these fundamental questions,”

he emphasized.

How much will EU nations allocate to defence by 2030?

“Over the next four years, in an ideal scenario, member states may begin allocating 3.5% of GDP to defence, amounting to approximately €2.4 trillion in total expenditure. The key question is whether this will be sufficient to meet all defence needs or if additional funding will be required.”

He noted, adding that a clearer assessment of actual requirements is expected by June.

Kubilius blank”>stressed that the European defence industry urgently requires more investment to expand its capabilities as a strategic sector.

“That is why we have established these clear requirements,”

he explained.

“We aim to encourage member states to invest more in European defence production, while also exploring partnership agreements with countries such as the United Kingdom and Canada, bringing them up to the same level of cooperation as EU nations,”

the Lithuanian commissioner stated.

He acknowledged the necessity for additional spending on preparedness and climate change initiatives but insisted that such expenditures should be handled separately from defence funding.

“We must combat climate change and ensure social protection—both of which are crucial. However, we need to address each issue separately. Defence spending should remain focused on defence,”

Kubilius stated.

“To deter potential aggression, we need to produce real weapons. However, this should not be seen as competition with other important priorities,”

he concluded.