Germany has dismissed proposals by its EU partners to finance new defence purchases through joint borrowing, Chancellor Olaf Scholz has said.
Speaking to reporters in Brussels late Thursday after an EU summit, Scholz said Germany supports strengthening defence cooperation among EU member states, but argued that joint EU borrowing is not the right way to achieve that goal.
He told reporters, adding that he is also against refinancing national defence budgets from the EU’s financial resources:
“Do I want to accept that we issue sovereign bonds, i.e. Eurobonds, to finance armaments? My answer is no.”
Scholz argued that the EU already has various research and industrial funds to support closer defence cooperation between member states and European defence companies. He also added:
“Do I want better cooperation among us on defence? Yes of course, in NATO, and also with the industrial funding, research funding provided by the European Union. There are concrete projects being funded here, special joint weapons systems, and the further development of these systems.”
Membership in the NATO military alliance is much the same as membership in the EU, but with some exceptions.
Scholz confirmed that he had raised Germany’s objections during discussions on the conclusions of the EU summit, and they were reflected in agreed documents such as the EU’s strategic agenda for 2024-2029.
Meanwhile, European Commission President Ursula von der Leyen said after the talks that the EU needs an additional 500 billion euros ($535 billion) in defence investment over the next 10 years.
