Ongoing geopolitical and economic crises demand a robust Cohesion Policy and enhanced funding to strengthen the EU's defence industry as the European Commission works on its proposal for the next long-term budget beyond 2027: this was the main topic on the agenda of the meeting of the Commission for Economic Policy (ECON) on 11 December.
A strong European defence industry
ECON members adopted a draft opinion demanding sufficient funding for a strong European defence industry, integrating regional innovation and defence investments. This is particularly important for existing defence clusters and regions exposed to military threats.
ECON members urged for the next long-term budget of the EU, the so-called Multiannual Financial Framework (MFF), to allocate dedicated resources to defence-related initiatives without undermining Cohesion Policy, which is critical for promoting territorial, economic, and social development. They stressed that any transfer between funds must not have a negative impact on local and regional authorities nor jeopardise cohesion in Europe, with territorial impact assessments ensuring regional needs are met.
Rapporteur Fernando LÓPEZ MIRAS (ES/EPP), President of Murcia region: "European regions have much to contribute to a strong security and defence policy in the European Union, a goal that strengthens democracy. The main asset is businesses, particularly SMEs, which need resolute support to integrate into European supply chains and to internationalise.”
The opinion is scheduled to be voted at the plenary session on 20-21 February 2025.
More information:
On 5 March 2024, the European Commission and the High Representative presented the European Defence Industrial Strategy to strengthen the European Defence Technological and Industrial Base (EDTIB) and achieve defence industrial readiness. The EDTIB is a competitive global player capable of producing world-class advanced systems.