The European Union faces a challenge in financing rearmament as member states are divided on joint arms purchases, joint borrowing, and the need to buy European. Despite fiscal challenges, EU member states have increased defense spending to address the threat from Russia and potential American isolationism. Joint purchasing and production are being considered to increase efficiency and cost effectiveness, but differing national armament needs sometimes hinder cooperation. Joint borrowing through Eurobonds is another option, but some countries, like Germany, remain hesitant. French President Emmanuel Macron advocates for “buying European” to enhance strategic autonomy, but others prioritize cost and delivery time. While the EU plays a limited role in defense, individual member states retain exclusive competence. Efforts to finance European rearmament must navigate these divisions to ensure a cohesive and effective defense strategy.
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