The European Defense Fund, the mechanism that can save continental security

The creation of a common European defense fund, independent of the European Union. A mechanism that would be open to all European countries that wish to join - including Great Britain, Norway and Switzerland - and could radically transform the continent's defense capabilities, represents the only viable solution in the current context in which Donald Trump has announced that he wants to reduce American military forces in Europe, states an article published yesterday by the British daily The Guardian.

Conceived by economists Guntram Wolff, Armin Steinbach and Jeromin Zettelmeyer, from the Bruegel think-tank, the fund would not be one of the European Union's mechanisms, but would be set up to benefit as many countries on the old continent as possible, which would give it important strategic flexibility. Thus, it could include major defense players that are not EU members, while avoiding blockages caused by countries that oppose integration into the common defense for ideological or constitutional reasons - such as Hungary or legally neutral states.

The cited source specifies that the financial mechanism could issue bonds on international markets to finance arms purchases on behalf of member states. Thus, debts would not appear on national balance sheets until the weapons are actually delivered, thus reducing the immediate fiscal pressure. In addition, common equipment - such as satellite systems or a unified air defense - could be financed through annual, proportional contributions, instead of massive direct payments.

The fund would also combat the fragmentation of the European defense market, fragmentation materialized in too many different products, small orders, lack of competitiveness. According to the cited source, a clear example of fragmentation is given by Germany, which in 2022 ordered 123 Leopard 2 tanks, which will be delivered by 2030, which amounts to 12 main tank types operated by European countries, compared to a single main tank type operated by the US. while European countries operate 12 main tank types, compared to just one in the US.

The cited source states that a common pool would allow for large, consolidated orders, increasing efficiency and reducing costs. In addition, it would not be affected by legal exceptions in the EU treaties (such as Article 346), which prevent real joint tenders in the field of defense. Thus, a single European buyer with considerable resources would provide the defense industry on the old continent with incentives to develop advanced technologies - from fifth-generation fighter jets and air defense systems, to reactive artillery such as Himars and heavy transport helicopters. Thus, Europe could reduce its dependence on American military technologies.

However, the implementation of the said fund will impose difficult decisions, specifies those from The Guardian, which shows that the UK would have to get closer to Europe again, just a few years after Brexit, while Germany and the Netherlands would have to accept the idea of joint loans, which until now was a political taboo. The cited source also states that smaller European states could be worried about the impact on their own defense industries.

But, in a multipolar world in rapid transition, Europe must decide whether it wants to remain a major geopolitical player or a spectator dependent on the will of others. The time for hesitation is over. Europe has a path to follow. The question is: will it have the courage to follow it?