As he acknowledged that political leadership would be needed, the incoming head of Europe’s largest defence industry association told Euronews that EU countries pooling tens of billions of their defence spending into a joint EU fund could help finance necessary flagship projects and close capability gaps faster.
The CEO of the Swedish defence and security firm Saab, Micael Johansson, stated on Wednesday that while the European Commission’s efforts to increase defence spending in the EU are a positive step, more work must be done to help nations and businesses collaborate on the development and acquisition of new systems.
The two primary financial pillars of the EU executive’s “Readiness 2030” defence plan, which was unveiled in March, are a €150 billion loan instrument known as SAFE and the relaxation of fiscal rules for defence spending, which the Commission estimated could see €650 billion poured into the sector over the next four years.
“These financing options remain primarily in the hands of each government and based on their own immediate needs,” Johansson, who will take over as head of the Aerospace, Security and Defence Industries Association of Europe (ASD) on June 15th, which represents over 4,000 firms, stated.
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