LETTER FROM BRUSSELS

Brussels has never debated so intensely about matters of defense and funding for its industrial and technological base. Three years after the start of the Russian invasion of Ukraine, and three months after Donald Trump's return to power in the United States, Europe has begun to worry about its defense again. For now, the North Atlantic Treaty Organization (NATO), headquartered in Brussels, is still responsible for the continent's collective defense, but the American president has not concealed his intentions regarding the alliance.

He has warned that if Europeans still want to count on the American nuclear umbrella, they will have to pay for their own conventional defense sectors and significantly increase their budgets. As US Secretary of State Marco Rubio said on April 3, European countries would need to allocate 5% of their Gross Domestic Product to military spending, compared to a current average of 2%. This would represent an exceptional financial surge, at the same time as a trade war and a stock market storm shake the planet.

In Brussels, the Commission unveiled its first ideas on March 4: a mega-plan entitled "ReArm Europe," which should allow the 27 EU member states to spend about €800 billion more on their armies up to 2030. It will, notably, allow them to deviate from the strict budgetary rules of the Stability and Growth Pact – the EU's criteria that require member states to adhere to maximums of 3% for deficit and 60% for debt. The Commission also proposed creating a fund, the Security Action for Europe (SAFE), aimed at raising about €150 billion from capital markets, which will then be lent to EU countries at preferential rates.

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