Euractiv features ASD's insight into EU defence funding challenges

In an article in Euractiv this week, the issue of EU defence reform – centred on increasing cross-border cooperation in production and enabling long-term procurement – was explored as clarity is sought ahead of intense budget negotiations. While the European Commission has floated various figures, such as the proposed €1.5 billion budget for the 2025-2027 EU Defence Industrial Programme (EDIP) and Commission President Ursula von der Leyen’s €500 billion estimate for the next decade, uncertainty remains over the precise structure and allocation of EU defence funding.

Burkard Schmitt, Defence & Security Director of ASD, provided key insights for the article into the defence industry’s stance, stressing that the starting point for addressing the funding question lies with the armed forces. He said, “The first question is not for industry; it is a question to member states’ armed forces. What do they need, and by when?” Burkard Schmitt went on to emphasise that understanding the requirements to meet NATO targets should be a priority, saying, “taking stock of what is needed for every member state to meet the NATO targets, and then calculating the investment needs.”

Burkard Schmitt further addressed the challenges of preparing for large-scale conflicts, posing the critical question, “What would it take to be prepared for a large-scale war? It’s one thing to have all your combat units fully equipped, but if you want true readiness, you must be able in case of war to repair and replace all that equipment, as well, and this in the shortest time possible.”

The article highlights the ongoing difficulty in quantifying the cost of European defence reform, and ASD’s contribution to the article represents a crucial perspective from the defence industry on aligning budgets with real military demands across Europe.