EU Unites Behind €140B Ukraine Loan, Boosts Defence with Drone Initiatives
EU leaders have united behind plans to bolster Europe's defence capabilities, with a focus on drone technology and anti-drone measures. The European Commission has proposed a €140 billion 'Reparations Loan' for Ukraine, using frozen Russian assets. This move comes amidst discussions on new financial and military aid to Ukraine, linking it to European defence initiatives.
The Commission outlined four key projects: the European drone wall, Eastern Flank Watch, Air Defence Shield, and Defence Space Shield. These initiatives aim to strengthen Europe's defence against potential threats. The Commission will release a detailed Roadmap for defence in two weeks, setting capability targets for a formal summit later this month.
Leaders expressed broad support for these proposals, with Danish Prime Minister Mette Frederiksen confirming the backing of her country. However, Belgian Prime Minister Bart De Wever raised legal and financial concerns about the loan proposal for Ukraine. European Commission President Ursula von der Leyen addressed these concerns, emphasising risk management and collective responsibility.
The financing for the European drone wall remains unclear. While the EU's SAFE program, a €150 billion credit facility, could potentially play a role, specific rules for surplus or deficit sharing have not been disclosed. Implementation is not expected before 2026.
EU leaders have shown solidarity in supporting the Commission's defence proposals. The upcoming Roadmap will provide more details on capability targets and financing. The loan proposal for Ukraine, while raising concerns, is being addressed by the Commission. The EU's commitment to strengthening its defence capabilities is clear, with a focus on addressing airspace violations and potential threats.
