MNI BRIEF: EC: EUR93bn In NGEU Loans Unavailable For Defence
MNI (LONDON) - The EUR93bn in unused NGEU programme loans will not be available to help fund the EU's plans to boost defence funding, European Commission spokesperson Maciej Berestecki said today.
The EU's post-pandemic recovery instrument NGEU had originally EUR291 billion available for countries to borrow but less than 200 billion was ever requested. The spokesperson said that this did not mean the remainder could be repurposed for defence investment. Brussels is more open to reprogramming Cohesion Funds for defence spending and investment. Berestecki said told reporters that Cohesion funds "can already be used to support industrial developments, including the defence sector."
While such EU initiatives have been mooted by senior EU officials, they privately acknowledge that the vast majority of the funds needed for the EU defence boost will come from the national level, with the EC now working on ways to exempt the increase from EU fiscal rules by resorting to national escape clauses.