European Union

The recent plan by President Ursula von der Leyen of a €150 billion European joint debt to fund the purchase of arms under the name ReArm Europe has sent shockwaves across the continent and beyond. The press announcement, made on March 4th, followed the infamous Oval Office meeting between US President Trump and Ukrainian President Zelensky. The bullyish scene marked a further decline in the liberal international order established by the US and its allies after the Second World War.

Against this backdrop, European leaders were quick to act. Meetings in the Elysée under the aegis of President Macron, gatherings in London with the British Prime Minister Starmer, or the recent European Council meeting on security policy signal the importance of recent events. However, it was von der Leyen’s announcement that seems to have ushered in a new age of European defence and security, but is that so?

The announcement focused on economic means to achieve a security goal, not on security itself. The EU is proposing to put its market power behind an initiative that will contribute to the long-term stability of that market. This is why the proposal must be seen through the lens of geoeconomics, not just defence or security.

Europe’s geoeconomic turn is nothing new. Even during the first von der Leyen Commission the President vowed to create a more geopolitical Commission, it was actually focused on a geoeconomic one. Geoeconomics are, according to Blackwill and Harris, “the use of economic instruments to promote and defend national (or European) interests, and to produce beneficial geopolitical results; and the effects of other nations’ economic actions on a country’s (or the EU’s) geopolitical goals”. Thus, it is clear that many of the Commission’s initiatives fall under this concept. It is worth mentioning a few that may have a direct bearing on Europe’s security and defence.

The first geoeconomic tool with a defence application that comes to mind is sanctions. These have long been part of the EU’s institutional architecture and rely on the size of the single market to damage the enemy’s economy in the short and medium term. They can take the form of import and export restrictions, asset freezes, or visa bans. Although they are branded as “peaceful tools of diplomacy”, they fit perfectly into the definition of geoeconomic tools provided above.

Another geoeconomic tool that can be directly applied to European security policy is the Foreign Direct Investment Screening Mechanism (FDI SM). This mechanism was legislated after Member States saw a worrying increase in Chinese investment in Europe, especially in sensitive industries. The same FDI SM could be directly applied to foreign investment targeting the European defence industry, again relying on the EU’s market power.

A number of strategies also complement these tools by defining what the EU’s priorities should be in different areas, such as 5G, critical raw materials, or energy, to name a few. The common denominator of all these geoeconomic instruments is their reliance on the size of the EU market and its attractiveness to other global economies. The measure recently proposed by von der Leyen on joint debt to buy weapons follows the same line. It has more to do with geoeconomics than with security or defence. From the point of view of competences, it makes sense for the EU institutions to focus on the Common Commercial Policy or the proper functioning of the internal market to guide EU policy, regardless of the specific policy area. Ultimately, these are also power struggles between the EU institutions and the Member States. However, it is unlikely that purely security measures will be led by the Commission in the short term. The creation of a common European army or further decisions to relaunch security integration will have to be spearheaded by the Member States.

All in all, the von der Leyen’s announcement is to be welcomed. The borrowing limit enshrined in the neoliberal rules imposed on the Member States by Maastricht is arbitrary. Its temporary lifting and mutualisation, as was the case during the Covid19 pandemic, is now considered an emergency measure in response to the emergency situation created by the Russian invasion of Ukraine. In the medium term, however, the repeated use of the same geoeconomic tool, the common debt, could become established. The only thing preventing the EU from unleashing its full economic power is the disagreement among member states on debt orthodoxy. It seems, as Monnet put it many years ago, that Europe is still built through crises and that it is indeed the sum of their solutions.

The post An expected surprise? Geoeconomic answers to security problems appeared first on Ideas on Europe.

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Next AFET committee meetings will be held on:

• Wednesday 9 and Thursday 10 April 2025, Brussels

Meetings are webstreamed with the exception of agenda items held "in camera".

AFET - DROI calendar of meetings 2025
Meeting documents
Webstreaming
Commissioners-designate hearings
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Length of video : 90'

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Length of video : 210'

Disclaimer : The interpretation of debates serves to facilitate communication and does not constitute an authentic record of proceedings. Only the original speech or the revised written translation is authentic.
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Length of video : 90'

Disclaimer : The interpretation of debates serves to facilitate communication and does not constitute an authentic record of proceedings. Only the original speech or the revised written translation is authentic.
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On 18 March, Ayman Safadi, Deputy Prime Minister and Minister of Foreign Affairs and Expatriates of the Hashemite Kingdom of Jordan, who last addressed the Committee on Foreign Affairs in July 2017, will speak with Members on EU-Jordan relations following the signing of the EU-Jordan Strategic and Comprehensive Partnership in January 2025, and on the situation in the region, in particular in Syria and Gaza.
This exchange takes place the day after the ninth Brussels Syria Conference - "Standing with Syria: Meeting the Needs for a Successful Transition".
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AMENDMENTS 325 - 633 - Draft report 2023 and 2024 Commission reports on Türkiye
Committee on Foreign Affairs
Nacho Sánchez Amor

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AMENDMENTS 1 - 324 - Draft report 2023 and 2024 Commission reports on Türkiye
Committee on Foreign Affairs
Nacho Sánchez Amor

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On 19 March, SEDE Members will exchange with Commissioner Henna Virkkunen, in charge of Tech Sovereignty, Security and Democracy. They will also discuss with Sauli Niinistö about his recent report on strengthening Europe’s civil and military preparedness and readiness. On 20 March, the SEDE Committee – in association with the Delegation for relations with the NATO PA – will welcome the NATO Deptuy Secretary General, Radmila Shekerinska, to discuss deterrence and defence, defence spending and

defence industry. Ukraine's security and defence needs remain high on the agenda - in camera - with notably a joint meeting with the Committee of the Verkhovna Rada of Ukraine on National Security, Defence and Intelligence and discussions about EU-Ukraine joint security commitments.

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European Council President António Costa invited leaders to the meeting of 20-21 March 2025 in Brussels, during which they will discuss competitiveness, Ukraine, security and defence, migration, and other items. 

President of the European Council António Costa presented the main results of the discussions of the leaders during the EU-South Africa summit held in Cape Town on 13 March 2025.

The President of the Eurogroup, Paschal Donohoe, gave a speech at the Hertie School of Governance on  'Europe at a crossroads: navigating the challenges ahead'.

European Council President António Costa, European Commission President Ursula von der Leyen and President of the Republic of South Africa Cyril Ramaphosa met in Cape Town for the 8th Summit between South Africa and the European Union. The leaders issued a joint declaration.

At the eighth EU-South Africa summit, European Council President António Costa delivered opening remarks and emphasized the importance of this strategic partnership in a changing global landscape. Highlighting shared values of democracy, human rights, and multilateralism, President Costa called for strengthened cooperation to address global challenges such as climate change, security and sustainable development. He expressed support for South Africa's leadership, particularly in its G20 presidency, and emphasised the need for joint action to build a fairer, more secure world.

The President of the Eurogroup, Paschal Donohoe, has sent a letter to the President of the Euro Summit, António Costa, to report on the work of the Eurogroup.