Europe's Defence Strategy: Joint Procurement for a United Future

Finnish central bank Governor Olli Rehn emphasizes the need for Europe to adopt unified defence strategies, including joint procurement of air defence equipment and drones. With discussions among EU finance ministers about financing defence through joint borrowing, the aim is to bolster European security despite existing public deficits.

Amid growing global uncertainties, Finnish central bank Governor Olli Rehn has called for Europe to adopt unified defence policies, including the joint procurement of air defence equipment and drones, to aid Ukraine and bolster its own defence capabilities. This appeal comes despite large public deficits.

Discussions kicked off this week as European Union finance ministers began deliberating on funding defence projects through new joint borrowing mechanisms, existing EU coffers, and an enhanced role for the European Investment Bank. Proposed changes to EU fiscal rules are also on the agenda to accommodate increased national spending for defence.

Rehn stressed that unity in European financing could effectively enhance regional security. In economic developments, the European Central Bank's recent interest rate decisions are hedged by uncertainties such as U.S. tariffs. Import tariffs from the U.S. might curb global output, adding layers of complexity to Europe's economic stability.

(With inputs from agencies.)