MNI SOURCES: Macron To Push For EU Defence, Energy Fund

French President Emmanuel Macron will push for the European Union to launch a fund to pay for an expansion of the bloc’s defence capability and energy autonomy along the lines of the Recovery and Resilience Facility created in response to the Covid pandemic, officials in Brussels told MNI.

Macron will argue for the defence and energy fund at the summit of EU leaders in Versailles later this week, officials said, adding that they expected the size and scope of any such plan to be the subject of tough debate.

“It’s only discussions. The question here is, is this the same as e.g. the balance of payments facility, where the EC can issue bonds within the margin of the budget, or is it more than that? Otherwise they need a new agreement on the budget.”

MUTUALISED DEBT

A report from the Eurasia Group thinktank suggests that Macron will ask for a mutualised debt programme well in excess of EUR100 billion, but short of the EUR750 billion Covid fund, with a range of EUR200-400 billion seen as a likely eventual range.

Some officials are still questioning whether so-called frugal countries, like Germany and Austria, would go along with a plan of this size, although the fact that many of these states are on the frontline of the crisis may ease resistance.

“With modest sums, opposition can probably be overcome,” another official said.

The same source noted that the mooted EUR200 billion figure would not look enormous.

“The loan/grant split has also to be spelled out,” the official said.