Germany blocks joint EU borrowing to finance new defense purchases

By Anadolu staff

BERLIN (AA) - Germany rejected proposals from its EU partners to finance new defense purchases through joint borrowing, said Chancellor Olaf Scholz.

Speaking to reporters in Brussels late Thursday after an EU summit, Scholz said Germany supports stronger defense cooperation among EU member states, but argued that joint EU borrowing is not the right way to achieve this.

“Do I want to accept that we issue sovereign bonds, i.e. Eurobonds, to finance armaments? My answer is no,” he told reporters, adding that he is also against refinancing national defense budgets from the EU’s financial resources.

Scholz argued that the EU already has various research and industrial funds to support closer defense cooperation among member states, and European defense companies.

“Do I want better cooperation among us on defense? Yes of course, in NATO, and also with the industrial funding, research funding provided by the European Union. There are concrete projects being funded here, special joint weapons systems, and the further development of these systems,” he said.

Membership in the NATO military alliance largely overlaps with the EU’s, but with several exceptions.

Scholz confirmed that he raised Germany’s objections during discussions on EU summit conclusions, and they were reflected in the agreed documents, such as the EU’s strategic agenda for 2024-2029.