When EU countries' economies needed help after the coronavirus pandemic, a joint giant loan was taken out at EU level. Now, several countries want to do the same to enable major investments in defense.
It may well end like that, notes Finance Minister Elisabeth Svantesson (The Moderate Party).
I think it's an extremely bad idea with joint borrowing, but in this situation, I don't think you should rule anything out, she says on her way to a meeting with her EU colleagues in Brussels.
Budget rules
Another alternative is to ease EU's tough budget rules and let countries borrow money themselves, even if it would result in larger budget deficits than allowed.
To build up a strong defense capability, many countries may need more debt. But I'm generally worried about it, because Europe is already highly indebted, says Svantesson.
According to Poland's Prime Minister Donald Tusk, the EU Commission has "within a few days" promised to come up with proposals on how different joint EU funds can be used for defense.
"Prioritize"
Svantesson believes that much depends on prioritizing.
Now, all countries must do what they are supposed to do, namely build their own defense capability. You can do that by prioritizing in the budget. We have done it, we have reduced aid, put more money on defense, for example, says the Finance Minister in Brussels.
Commission President Ursula von der Leyen notes at the same time that the EU has already done a lot for Ukraine.
"Financially and militarily, Europe has put more on the table than anyone else. And we will increase it", she writes on X after a meeting with the US's Ukraine envoy Keith Kellogg on Tuesday.
