Dear all,

I would like to start my words with some kind of self-congratulation:

I am the first European Commissioner for defence and space to visit Washington DC. Because the European Union never had a European Commissioner for Defence. Never!

The fact that the Commission President, Ursula von der Leyen, created this post last year - is a sign. A sign that times have changed, a sign that Europe has changed.

Times have changed because we, in Europe, are under threat.

Putin is a clear and present danger. Russia is ramping up its war machine, is producing weapons around the clock. Russia produces the same amount of ammunition in three months, as all NATO countries in one year – including the US.

European intelligence services publicly say Russia will be ready to challenge NATO in three to five years time. The German intelligence service recently said, that they have evidence (not only prediction), that the Kremlin is discussing such plans.

A very impressive warning last week was given by U.S. European Command and NATO Allied Forces Commander in Europe, General Alexus Grynkewich, that the NATO alliance must prepare for the possibility that Russia and China could launch wars in Europe and the Pacific simultaneously, with 2027 being a potential flashpoint year.

I came here to say first of all :

Europe is preparing to take responsibility for its own defence. You asked us to do that, and finally  we are moving ahead.

Second, I want to tell you, that we are recognizing that you, Americans, have the right and the reason in the longer term perspective to start to shift more and more towards the Indo-Pacific in order to mitigate Chinese rising military power.

And you have the right to ask us to take responsibility on European defence.

We, Europeans, need to accept such an American position as logical, and that is the reason why we need to take our own logical conclusion - we need to be ready to take such a responsibility. Especially when we see that the Russians are becoming more and more aggressive.

It means that we Europeans need to ramp up our defence capabilities. That is what we are doing. Not only because the Americans have been demanding us to do so since long ago, but also  because we see a clear and present danger of the possibility of Putins aggression. 

We are preparing ourselves to take responsibility and for that we need to build our own capacities, independent capacities.

Our preparations go with a “big-bang” ambition. The decisions which this Commission and Member States made on defence during the first eight months of the Commission mandate are unprecedented.

I will try very briefly to name some of them:

The Commission recently approved strategy of our responsibility - “the White Paper on the future of European defence”.

Also we are urgently implementing a totally new program “Rearm EU”, approved by the Commission, with new possibilities for European Member States to spend an additional 800 billion euros for defence during the next 4 years, including very attractive European,  so called “SAFE loans” of 150 billion euros in value.

Just last week the Commission approved the draft of the next multi-annual budget for the years 2028-2035. It includes 5 times bigger spending for defence and space as we have now - up to 131 billion euros.

Recently European members of NATO agreed to spend 3.5% of GDP for real defence. Additionally 1.5% for items, related to defence, for example - military mobility. In total - 5% of GDP. This target will be achieved in 2035.

In addition, recently we approved the very ambitious Omnibus Simplification in Defence, which cuts the time for authorities to give permits for the expansion of defence industrial facilities from 4 years down to 2 months.

Now we are preparing  plans of delivery - how to move towards the contracts, production and supply of what was agreed as NATO “capability targets”, especially in the area of strategic enablers and European wide flagship projects, like Air defence shield or Eastern border defence shield.

Later on in the autumn we are planning to come with Roadmap for modernization of our defence industry and Communication on Military Mobility.

So, this is evidence - that we in the European Union are serious about taking responsibility on our shoulders.

Because of our preparation for such a responsibility, big European money is starting to come into European defence.

The majority of the money will come from EU Member States national defence spending.

As I said before, European members of NATO agreed to spend 3.5% of GDP for real defence.

Lets look more deeply into that financial perspective. My prediction is that European Member States will spend in average around 3% of GDP during the 2028-2035 period. Which means - around  600 billion euros per year (nearly 700 billion dollars); or 4.2 trillion euros (almost 5 trillion dollars) during the whole period 2028-2035;

We can predict that according to NATO standards around 50% of that amount (2 trillion euros) will be spent for real investment into defence equipment.

Member States will spend their defence money where they will decide; it will not be regulated by the Commission. Member States can procure from US, from South Korea, or from Ukraine, not only from the EU, and that is their sovereign decision.

Why I am saying that?

Because sometimes we hear complaints from our transatlantic partners, that Europeans will no longer procure any American weapons.

There is no basis for American industry complaints that they will be prohibited to participate in European contracts. Member States will spend their 2 trillions were ever they will decide. I guess - quite a lot in the US, since already today European countries are spending in the US around of 40% of their national defence money.

While Americans are procuring only 1% of their weapons from European industries, despite the fact that European production is very competitive and is able to win in other countries against American competitors.

American industries should not worry, that during 2028-2035 the EU Commission will implement EDIP type programs to support European defence industry, which is our legitimate interest. The whole multi-annual budget for such a support will be less than 100 billion euros for the whole 2028-2035 period.

There is no reason for Americans to complain about EDIPs orientation to European industry, since 100 billion for the EU defence program is 20 times less than 2 trillion euros of national defence spending, which will stay totally unregulated.

In addition to that we need to remember, that the US defence industry also will have the possibility to participate in SAFE or EDIP programs in the same way as other 3rd countries, like Great Britain or Canada are ready to do. There are clear rules for those programs and our partners are implementing them.

The biggest challenge for defence industry on both sides of the Atlantic will not be to get the orders from European governments.

Because the big orders will come.

The biggest challenge will be to meet those orders. And produce in mass and on time.

From the European point of view, as I see it, - American defence industry has only one problem in Europe and its called - ITAR.

The rules that place potential restrictions on use of American produced weapons.

And the problem is related with the European perception of American credibility.

If Putins armies come, we cannot go into a fight with the possibility that our hands can be tied behind our backs.

That is the reason European defense companies are already  going to Member States using inventive marketing.

They are selling defence products saying, that the product is “ITAR free”.

Its like selling soda: “sugar free”, or potato chips “fat free.”

We are human beings - we like to criticize others. Much more than ourselves.

I see my task - to seek for constructive dialogue with transatlantic partners: Europeans should not blame Americans, that they are asking us to take responsibility on European defence; Americans should not blame us, that we want to strengthen European defence industry in order to take this responsibility.

That is why, my most important message today is very simple.

I see the strategic need for both sides to have a rational dialogue and agreement on a timeline and tasks, which both of us need to implement in order for Europe to be ready to take responsibility on our shoulders.

For such an agreed plan we need to have a clear understanding what American capabilities, which they now are providing for security of Europe, we shall need to replace, at what time, and how much it will cost. Such an agreed plan will allow us in the future to avoid any kind of misunderstandings or unexpected developments.

And before finishing - my last message.

We must defend Ukraine.

Lets remember, that the EU and US annually are spending less than 0.1 % of their respective GDP for military support of Ukraine.

Thats not a lot compared to the 3.5% we agreed with NATO to spend on our real defence.

Having that in mind, we created a special possibility for SAFE loans to be used together with Ukraine, procuring from Ukraine and for the defence needs of Ukraine.

And Ukraine with its battle tested army and battle tested, very innovative defence industry is a very valuable asset for European security.

We need to learn a lot from Ukraine in preparing ourselves for the wars of tomorrow.  And how to innovative in defence.  Ukraine needs to be part of European security architecture.

Last week together with government of Ukraine we created  a special joint platform “Brave Tech EU” in order to develop joint innovative defence projects and to test them in the battle field. That is how our industries will learn a lot.

Our ability to defend Ukraine, will certainly influence what China will decide to do in Taiwan.

As General Grynkewich rightly stressed :“Each of these threats that are out there [Russian and Chinese threats] cannot be viewed, in my estimation, as discrete challenges. Weve got to think about how all of them are aligning.”

So in Ukraine whats at stake is not only the future of Ukraine and Europe, but of the whole world including the United States.

******

And finally - it is clear, that to deter aggression and prevent war, Europe and America must stand together.

And I know - we will. As real and equal partners.