‘Looming threat’ from Russia sparks ‘major rethink’ of EU defense policy – Politico

The European Parliament is set to hold closed-door, high-level discussions on Wednesday in relation to a new report on the competitiveness of the EU defense industry, Politico has reported.

The document, prepared by former Italian prime minister Mario Draghi, reportedly calls on the bloc to rethink its defense policy in light of the Ukraine conflict and the purported threat from Russia.

Draghi prepared the 400-page report at the request of European Commission President Ursula von der Leyen, who said last week that the EU needs a “systemic overhaul” of its defense spending to increase production and reduce its dependence on the US.

“The EU’s defense industrial base is facing structural challenges in terms of capacity, know-how and technological edge. As a result, the EU is not keeping pace with its global competitors,” a draft of the document reads, Politico reported on Monday.

The report also cites “the emergence of new types of hybrid threats” and “a possible shift of geographic focus” by the US as reasons for the EU to take “growing responsibility” for its own security.

Draghi, who also previously served as the head of the European Central Bank, suggested earlier this year that his report will focus on the possible ways to fill the productivity gap, which has been mostly driven by a lack of investment in innovation.

The EU spends roughly one-third of what the US does on defense in monetary terms, and the bloc’s arms companies depend 80% on international suppliers, largely from across the Atlantic, Draghi wrote.

International think tank, the European Council on Foreign Relations (ECFR), noted last month that the conflict in Ukraine had revealed “the sorry state of European militaries and defense industries.”

Among the recommendations are the introduction of steps to incentivize domestic defense solutions over competitors, and a removal of red tape for weapons manufacturers to access EU funding.

The United States, the founding member of NATO, has played a central role in the bloc’s defense, as most EU nations are NATO members. Since the outbreak of the Ukraine conflict in early 2022, the White House has been sending additional forces to the EU. Some nations, such as the Czech Republic and the Baltic states, have claimed that Russia would attack them if it won in Ukraine.

Moscow has repeatedly dismissed the claims. President Vladimir Putin said in June that there is no threat of Russia attacking NATO countries as it has no “imperial ambitions,” and described such allegations as “nonsense.”