Southern European Countries Reject EU Plan for Rearming the Continent

Southern European countries have expressed disagreement with the European Commission’s proposal to increase defense spending through cheap loans. Officials in these countries are concerned that such an initiative could only worsen their already significant debt burden. Among the opponents of this proposal are France, Italy, and Spain.

This is reported by AgroReview

The proposal, announced by European Commission President Ursula von der Leyen, included the creation of a €150 billion loan package backed by the EU budget. Additionally, the plan involved relaxing the European Union’s fiscal rules to stimulate new investments in defense and reduce dependence on the United States.

Alternative Proposals from Southern Countries

Southern European countries, facing high levels of debt, are proposing an alternative in the form of defense bonds. These bonds would be financed through joint EU borrowing on capital markets. Implementing this initiative requires unanimous approval from the 27 EU member states.

However, von der Leyen currently does not support this idea, considering the potential opposition from northern countries such as Germany and the Netherlands, which believe it could create a dangerous precedent for mutual debt cancellation.