Southern European states are rebuffing a European Commission plan to turbocharge defense spending with cheap loans, fearing it would add to their already heavy debt burdens. The resistance, led by France, Italy and Spain, deals a significant setback to Commission President Ursula von der Leyen’s drive to boost Europe’s military autonomy.
Her proposal, which includes a €150 billion loan package and an emergency clause to loosen EU fiscal rules, was intended to unlock major new investments in defense and reduce the bloc’s reliance on U.S. protection. But the stalemate now risks derailing Brussels’ plan to funnel more weapons from Europe to Ukraine.
“Some countries have serious doubts on the feasibility or even the possibility of indebting [themselves] to these levels,” said a senior EU diplomat. Läs artikel