Archive: https://archive.is/2025.03.08-050706/https://www.ft.com/content/76937db3-0b3b-44d4-9005-9709512acd53
A proposed €150bn injection into the EU’s defence industry has become a new flashpoint in a long-standing battle between France and Germany over the continent’s rearmament drive and whether it should include countries outside the bloc.
Spooked by US President Donald Trump’s threats to end generations of American protection, Europe has pledged to increase defence spending dramatically and scale up their domestic capabilities that have withered since the cold war.
Last week the European Commission proposed to raise €150bn that would be lent to capitals to boost their military production. While the broad idea has received unanimous political backing, the details are still being fleshed out, with heavy lobbying over whether the cash could be spent on arms made outside the bloc.
Including foreign producers keeps the local ones honest, otherwise they will overcharge even worse than usual.
It would be probably best to just use some of the money to nationalize a few local producers instead if you really want to push for local production only. But obviously you will not read about that option in the Financial Times.
Maybe publicly include them, but then only buy “local” - that way the offers stay fair and you get the best of both deals!
Well, you need to be a bit smarter about it, otherwise the bidders will know about your plan to buy only local and ripp you off anyways. It’s very hard as a state to keep such ideas secret.