On October 30, 2024, former Finnish President Sauli Niinistö urged the European Union (EU) to allocate at least 20% of its budget to security and crisis preparedness. This recommendation follows his assessment of the EU's security needs in light of the ongoing geopolitical tensions and climate change challenges.
Niinistö presented his findings in Brussels, identifying geopolitical conflicts and climate change as the two primary threats facing Europe. He advised citizens to prepare for emergencies by storing supplies for at least 72 hours.
The current EU budget, which totals €1.2 trillion and extends until 2027, amounts to approximately 1% of the EU's GDP. Niinistö's report comes amidst tense negotiations for the next seven-year budget, with governments hesitant to increase funding.
European Commission President Ursula von der Leyen reiterated the need for heightened readiness against Russian aggression, stating that the war in Ukraine poses a significant threat to security. She emphasized the importance of preparing for potential worst-case scenarios.
The prospect of Donald Trump's return to the White House after the upcoming U.S. presidential elections adds pressure on European governments to increase defense spending, as Trump has threatened to cut military aid to NATO allies not meeting the 2% GDP defense spending target.
Niinistö highlighted the inadequacy of EU defense funding compared to national budgets and supported private investments in the defense sector. He also suggested revising the mandate of the European Investment Bank to allow investments in defense.
While some member states advocate for a new joint EU defense bond, fiscally conservative countries remain cautious. Von der Leyen proposed earlier this year that EU funds be used to strengthen the European defense industry and collectively procure weapons, but Germany has been hesitant to back this initiative.
On October 30, von der Leyen stated that additional defense funding should come from member contributions or new revenue streams for the budget, emphasizing the need for a decision on the path forward.