EU should discuss specifics on defence, not Eurobonds, German finance minister says

By Maria Martinez

The European Union should discuss specific ideas on European defence instead of abstract ones like European defence bonds, German Finance Ministry Joerg Kukies said on Monday in Brussels.

"We think that's better than abstract discussions about Eurobonds for defence financing," Kukies said before a meeting of euro area finance ministers.

Spurred by Russia's war in Ukraine and fears that the United States may reduce its commitments to European security, many European leaders have declared the continent needs to spend more on defending itself.

But the question of how to fund big defence spending increases remains unresolved.

Germany has in the past been among European Union members that have opposed the idea of joint EU borrowing to fund key investments in areas such as defence, a position that has frustrated policymakers in other capitals.

Kukies spoke about "concrete examples" such as the European Peace Facility, an off-budget EU instrument for security, or the idea of the European Investment Bank doing more on in the area of dual-use goods.

"We have a very strong preference to focus on these specific ideas rather than speaking abstractly about euro bonds where nobody knows exactly what they mean, what they will be used for," Kukies said.