A significant change in the European Union's approach to defense and security

The call by European Council President Charles Michel for "European Defense Bonds" marks a significant shift in the European Union's approach to defense and security.

The defense and security industry needs both investment and financing. At the European Defense Agency's (EDA) annual conference in 2023, the EU shows that it is now increasingly focusing on it, by proposing. “European defense bonds. This, together with several new initiatives, marks a significant change in the European Union's approach to defense and security. The proposal is in line with a broader trend of deepening military coordination and investment among EU member states in response to evolving global security challenges.

Highlights from President Michel's speech

• Proposal for European defense bonds
  Michel proposed the idea of "European Defense Bonds" as a mechanism to finance investment in European defense and security.
  These bonds are seen as an attractive asset class for all types of investors to support defense initiatives.
• Increased defense investment
  Michel called on member states to pool resources, potentially amounting to €600 billion in defense investment over the next decade.
  Emphasis on better coordination of these investments to maximize efficiency and effectiveness.
• European Cyber Power
  A proposal for a European cyber force with offensive capabilities to counter cyber threats and attacks was put forward.
• Strengthening the EU's defence
  The need to strengthen the European continent and improve Europe's defense capabilities was emphasized, especially given current geopolitical tensions.
• EU values and defense strategy
  Michel emphasized the importance of aligning military investments and activities with the EU's values of liberal democracy.
  He noted that Russia's invasion has created a new urgency for EU defence.

Additional perspective

• Minister of Defense of Belgium
  Ludivine Dedonder, Belgium's Minister of Defense, reiterated the need for investment in defense capabilities, emphasizing the necessity of a deterrent and resilient force.
  Belgium, which will take over the EU presidency of the Council of the European Union in January, is clearly focusing on rebuilding defense capabilities.
• Defense sector of Cyprus
  Michalis Giorgallas, the Minister of Defense of Cyprus, pointed out, in addition to traditional investments in defense, the importance of investments in total defense. The defense of Cyprus places great emphasis on areas such as cyber defence, communications, maritime surveillance and unmanned aerial vehicles.

Conclusion

EDA's 2023 Annual Conference served as a platform for EU leaders and stakeholders to discuss the future of Europe's defence, highlighting the need for increased investment, coordination and innovation in defense capabilities. The proposed European Defense Bonds, the emphasis on a unified cyber force and the call for resilient defense mechanisms reflect a strategic shift in the EU's defense posture in response to the current global security situation.