European Union was founded in the aftermath of Second World War II to avoid experiencing such devastation once more. The fundamental theory was the interdependency among countries and the exclusion of defence-related matters. Under the shadow of approaching war, the interdependency tends to fade while defence gains momentum. Europe first established a defence fund. The EU aims to boost the European defence industry with public and private investment, and the possibility of issuing Eurobonds is one of the ideas under consideration. However, the countries of the North do not welcome the idea positively, while the countries of the South see it positively. Germany, the Netherlands, Sweden, Denmark and Austria are against such an idea, while France, Italy and Greece favour it.
French President Emmanuel Macron is leading the charge to boost defence spending. The Financial Times reported that an official from the French capital said, “Obviously, we are raising the issue to say that we need to have innovative sources of funding,” adding, “What we want is not to start the debate with limitations on the sources of financing that can be imagined or mobilised. So euro bonds for us . . . should be examined.”
Writing an article about European defence bonds, European Council President Charles Michel said, “could be a powerful means to strengthen our technological innovation and industrial base”.
The German official responded, “I have the feeling that the council president got a bit ahead of himself in this debate.”
