North-South EU divide over defense bond
Prime Minister Kyriakos Mitsotakis has proposed issuing Eurobonds to finance the EU’s defense, an idea which seems to be shared by the South but not by the North.
“If Europe really wants to remain defensively fortified, it will have to look at new ways of financing defense spending. I am referring to the possibility of issuing Eurobonds to be used exclusively for its defense armoring,” Mitsotakis told reporters upon his arrival at the EU summit in Brussels on Thursday.
“Greece has already exceeded 2% of defense spending as a percentage of GDP in recent years. This is not the case for other European countries. If Europe wants to remain defensively fortified, it needs to look at new ways of financing defense spending,” he insisted.
“The time has now come to be able to give substance to Europe’s need to ensure its defense and security. And I hope that in this European Council we will have a substantive debate on these issues,” he added.
According to European diplomatic sources, the idea is supported by France and Italy and the countries of the South in general, while the so-called more stringent countries to the north – i.e. Germany, the Netherlands, Sweden, Denmark and Austria – are against.
Tellingly, Dutch Prime Minister Mark Rutte ruled out the idea on his arrival at the European Council in Brussels, stressing that the Netherlands does not agree with issuing Eurobonds for defense.
The debate that began on Thursday at the summit and will continue in the coming months is examining numerous “innovative ideas” to enhance Europe’s defense industry, which requires public and private investment.
In the draft European Council conclusions, European leaders call for “all options” to be examined in view of the Commission’s report due in June.
