Congress passed the fiscal 2024 defense spending bill worth $825 billion, allowing the Pentagon to launch planned initiatives and procure key weapons systems after months of funding delays. The bill includes funds for ships, fighter jets, tankers, and hypersonic weapons, as well as multiyear contracts for critical munitions. It also allocates $300 million for the Ukraine Security Assistance Initiative, but faces opposition from some Republicans, including former President Donald Trump, and internal party tensions.
Senator Roger Wicker is advocating for a $1.4 trillion defense budget, citing increasing global threats, while some Republicans and progressive Democrats question the need for such a large increase. The current defense budget is nearly $1 trillion, and there are concerns about where to cut and whether the budget is falling short. The Pentagon faces challenges in addressing new wars and rising costs, and the debate over the defense budget is intensifying as it approaches $1 trillion, with questions about the return on investment and the need for a different strategy.
The European Commission has proposed a €1.5 billion plan to boost defense production by promoting joint military purchases among EU member states, aiming to address the sector's struggles and fragmentation. The plan, known as the European Defence Industry Program (EDIP), seeks to incentivize joint procurement, increase spending within the EU, and create a new legal framework for joint European armament programs. The funding, running from 2025 to 2027, also aims to support Ukraine and fix supply chain bottlenecks in the EU's defense industry, with a focus on small and medium-sized companies.
The European Commission is set to propose measures to bolster the EU's arms industry and shift it to "war economy mode" in response to Russia's invasion of Ukraine, including encouraging joint procurement of weapons, increasing production capacity, and creating a European version of the U.S. Foreign Military Sales scheme. The proposals aim to make the European defense industry more resilient and less reliant on purely national efforts, but will require approval from EU member states and the European Parliament. The package is expected to include around 1.5 billion euros in new funding through 2027, with potential for greater coordinated spending in the future.
