EU Industry Chief Urging European Defense Companies To Get Into “War Economy Mode”

 

Politico: Brussels unveils plan to boost EU defense industry  

Contentiously, the framework would allow tapping new sources of EU money. 

BRUSSELS — European Commission industry chief Thierry Breton has urged European defense companies to get into “war economy mode” as he unveiled a new plan to boost weapons manufacturing across the EU. 

The Act in Support of Ammunition Production (ASAP) agreed Wednesday by the European Commission will pump some €500 million from the EU budget into European shell factories to boost weapons manufacturing — matched with co-financing of around €500 million from member countries and other sources. 

The aim is to produce 1 million rounds of ammunition within one year.  

Read more .... 

Brussels Unveils Plan To Boost EU Defense Industry  

EU wants to ramp up ammunition production to help Ukraine -- AP  

EU envoys seal deal on joint ammunition buying for Ukraine -- Reuters  

EU pledges over $1 billion to refresh its arms factories for Ukraine -- Defense News  

EU plans 'war economy' bullet production to aid Kyiv -- DW

Growing Indications That The EU Is About To Shift To A War Economy

Gov.uk  

Eastern Herald: Spiegel: EC has drawn up a three-step plan for the transition of the EU’s wartime economy  

The European Commission has drawn up a three-step plan to transfer the economies of EU countries to a war regime. reports Spiegel. 

The European Commission wants to increase ammunition production in Europe, not only to ensure supplies to Ukraine, but also to replenish its own stocks. 

The first point provides for an immediate increase in the supply of ammunition to Ukraine, in particular 155 mm caliber artillery shells.  

Read more .... 

Update: EU must shift to wartime economy – industry commissioner (RT)  

Update #2: Europe must prepare for a wartime economy (European Policy Centre).  

WNU Editor: Unlike Russia that has prepared its economy to transition to a war economy since 2014, the EU is not even remotely prepared to shift to such an economy. 

French President Macron was the first major EU leader to call for a shift to a war economy last year .... Macron petitions Europe to support its own defense industry amid new ‘war economy’ (Defense News).

EU’s Weapons Fund To Support Weapon Transfers To Ukraine Is Running Out Of Money

With the increased demand, the reimbursement rate dropped from initially 85% to roughly 46% of the asks, according to estimates. [Shutterstock/Olha Solodenko]  

Politico: EU’s weapons kitty runs dry as Ukraine seeks more arms 

Brussels initially covered 85 percent of reimbursement requests for Ukraine donations, but that number has dropped to less than half. 

A much-touted EU fund meant to help countries replace weapons shipped to Ukraine is increasingly unable to cover an influx of reimbursement requests — and it hasn’t even sent out its first payment. 

Days after Russia’s war began, the EU set up a €‎500 million pot, encouraging countries to arm Kyiv and ask the EU to foot the bill. After looking at the receipts it received, Brussels determined it could cover about 85 percent of the costs, according to estimates shared by three diplomats.  

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Update: EU arms fund faces reimbursement issues amid increased Ukrainian needs (Euractiv) 

WNU Editor: A friend of mine said to me last week that when this European fund is out of money, EU politicians will lose interest in sending their old weapons to Ukraine to get some of it reimbursed from this fund. 

I said yes, but let us see how long will it take for the EU to replenish this fund. 

Sighhhh .... it did not take long .... EU to OK more money for Ukraine weapons, soldier training (Politico). More here .... EU set to train 15,000 Ukrainian troops, provide more arms funding for Kyiv (Euractiv).

European Central Bank President Christine Lagarde Warns ‘Outlook Is Darkening’

European Central Bank President Christine Lagarde  

Politico: ECB’s Lagarde expects technical recession this winter 

Central Bank estimates currently predict euro area growth to remain positive in 2023, albeit low at 0.9 percent. The European Central Bank expects the euro area economy to contract in the last quarter of this year and in the first quarter next year, its president said Monday. 

That fits the definition of a technical recession, which is two consecutive quarters of negative growth. 

"It is difficult to predict what the real outcome will be in 2023 but it will certainly be a difficult year of which the first quarter will most likely be negative, as we believe the last quarter of 2022 will likely be negative as well," ECB President Christine Lagarde told the Economic and Monetary Affairs Committee of the European Parliament.  

Read more ....  

Update #1: Europe's outlook 'darkening,' ECB head hedges on recession (AP) 

Update #2: EU central bank warns ‘outlook is darkening’ (RT)  

WNU Editor: ECB President Christine Lagarde blames Russia for this economic crisis, even though it is the EU that imposed sanctions over Russia's invasion of Ukraine thereby precipitating the current economic crisis not the otherway around. 

ECB President Christine Lagarde is also predicting a short technical recession. 

I disagree. 

Europe's access to cheap and reliable energy from Russia has now come to an end. What this means is that Europe's business model, based on cheap energy, is now broken.

For the people in Europe this means expensive energy alternatives and supplies, the closure of businesses that are dependent on reliable and affordable energy, and the departure of businesses to other more affordable energy producing countries. 

Europe is not facing a short recession this winter. Europe is already in a recession, and it is going to get worse.

European Commission President Ursula von der Leyen Issues Veiled Threat To Italy's Conservative Coalition

European Commission President Ursula von der Leyen attends the 77th United Nations General Assembly at the United Nations headquarters  

Reuters: EU's von der Leyen delivers veiled warning to Italy's right wing 

BRUSSELS (Reuters) - European Commission chief Ursula von der Leyen has warned Italy of consequences should it veer away from democratic principles, issuing a barely veiled threat ahead of Sunday's election that a rightist bloc led by Giorgia Meloni is expected to win. 

The comments highlighted concern in some European capitals over the forthcoming election and suggested that relations between Brussels and Rome could get turbulent if Meloni and her partners secure victory. 

"My approach is that whatever democratic government is willing to work with us, we're working together," von der Leyen said at Princeton University in the United States on Thursday, responding to a question on whether there were any concerns with regard to the upcoming elections in Italy. 

"If things go in a difficult direction, I've spoken about Hungary and Poland, we have tools," she added.  

Read more ....  

Update #1: Italian election: EU can work with any democracy but has 'tools' if it gets 'difficult', VDL says (Euronews)  

Update #2: Von der Leyen warns that there are «instruments» in the face of governments that move away from the «right direction». (News 360)  

WNU Editor: Italy's conservative coalition are furious with European Commission President Ursula von der Leyen attempt to influence Sunday's election .... ‘Squalid threats’: Italy’s Salvini hits out at EU chief over election comment (The Local). More here .... Salvini calls on Von Der Leyen to resign or apologize for his «threats» to Italy (News 360).

EU Commission Has Laid Out Plans For Joint Purchases Of Weapons

Brussels plans to finance joint EU weapons procurement for the first time https://t.co/LnyClvuhye

— FT Europe (@ftbrussels) July 19, 2022

Politico: European Commission sets out joint weapon-purchase plan 

Aim is to replenish stocks of arms after many EU countries supplied Ukraine 

The European Commission laid out plans Tuesday that will allow European Union nations to jointly purchase weapons, amid growing appeals from Ukraine for more military support in their pushback against Russian forces. 

The initiative will allow the EU to replenish arms that have already been provided to Ukraine, the Commission’s Internal Market Commissioner Thierry Breton said.  

Read more ....  

Update #1: EU Investment Tool Aims to Boost Joint Weapons Purchases (Bloomberg) 

Update #2: EU mulls joint arms purchases to boost stocks depleted due to war in Ukraine (AFP)  

Update #3: EU Proposes Joint Arms Purchases to Replenish Stocks (The Defense Post) 

WNU Editor: This is what the EU kleptocrats have long dreamed about. It will be the EU bureaucracy and not member states deciding what weapons will be purchased.

IMF Warns Europe Will Be Facing A Severe Recession In The Event Of A Russian Natural Gas Embargo

The Guardian: Russian gas shutoff would send some EU countries into recession, IMF warns 

Fund says GDP in Hungary, Slovakia and Czech Republic would fall by up to 6%, with Italy, Germany and Austria also hit hard 

A total shutdown of Russian gas supply would reduce GDP in the most vulnerable EU countries by as much as 6% and send them plunging into recession, the International Monetary Fund has warned. 

Amid speculation that the Russian president, Vladimir Putin, will keep the Nord Stream 1 pipeline closed when routine annual maintenance ends later this week, the IMF said Europe lacked a comprehensive plan to cope with shortages, further increases in energy prices and the impact on growth.  

Read more ....  

Update #1: A Russian gas cutoff would send Europe into recession unless nations around the world pooled their dwindling supplies together, IMF says (Insider)  

Update #2: IMF warns of severe recession across Europe in the event of a Russian gas embargo - FT (Reuters)  

WNU Editor: This IMF warning was issued before this news was announced .... Reuters Says Russia Will Be Restarting Gas Exports To Europe From Nord Stream 1 On Schedule.

EU Now Expects Record Inflation And A Decrease In Economic Growth For 2022 And 2023

 

The Guardian: Russian war slowing growth and hiking inflation, European Commission warns  

Body revises economic forecast and says outlook for EU and eurozone heavily dependent on course of war   

Europe’s economy faces the twin blows of slower growth and higher inflation as it struggles to deal with the fallout from Russia’s invasion of Ukraine, the European Commission has warned. 

In its summer forecast, the governing body in Brussels said the “protracted war” was sending shockwaves through the eurozone and the wider EU, leading to a marked slowdown in activity next year.  

Read more ....  

WNU Editor: IMHO I see this as an optimistic prediction. 

EU Now Expects Record Inflation And A Decrease In Economic Growth For 2022 And 2023  

EU hikes inflation forecast to 8.3% for 2022 as Russia-Ukraine war drives soaring prices -- CNBC  

Commission cuts euro area growth, revises inflation up -- Politico  

EU expects Russia's invasion of Ukraine to push inflation to record high -- DW  

EU cuts euro zone growth forecasts, revises up inflation outlook -- Reuters  

Europe’s Price Shock Will Last Longer With Less Growth, EU Says -- Bloomberg

Euro Sculpture In Frankfurt To Be Auctioned Off

A sculpture depicting the Euro currency symbol by German artist Ottmar Hörl is seen in front of the former European Central Bank (ECB) on December 22, 2021. ANDRE PAIN/AFP  

Euronews: Euro sculpture in Frankfurt to be auctioned off amid vandalism and high maintenance costs 

The iconic euro sculpture outside the former European Central Bank (ECB) headquarters in Frankfurt will be auctioned after owners said it has become too expensive to maintain. 

Some 14-metres tall, the big blue sculpture currently belongs to the non-profit association Frankfurter Kultur Komitee (FraKK), but will now be sold off to the highest bidder later in the year. 

 In a statement, FraKK said financing from private sponsors was "no longer sufficient" for the 50-tonne steel sculpture to be kept in a "safe condition".  

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WNU editor: To be auctioned off due to vandalism and high maintenance costs?!?!?!?

EU's Vision Of Becoming A Superpower Has Been Exposed As A Delusion By The Ukraine War

Soeren Kern Zero Hedge/The Gatestone Institute: Ukraine War Blows Up EU's Superpower Delusion 

The leaders of France, Germany and Italy have jointly visited Ukraine in an attempt to present a unified European front regarding the Russia-Ukraine war. 

The one-day visit was long on rhetoric but short on substance: European unity remains elusive. When Russian President Vladimir Putin launched his invasion of Ukraine on February 24, the European Union responded the following day with a package of unprecedented economic sanctions aimed at isolating Russia. 

The EU, which was praised for displaying "determination, unity and speed" in its response to Putin, was said to be facing a "transformative moment" that would allow the bloc to become a "geostrategic actor" on the global stage. An observer claimed that the EU had become "a top geopolitical protagonist" and that Europe "discovered that it's a superpower."  

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WNU Editor: The Polish Foreign Minister is stating the obvious .... Polish official: Europe can’t defend itself without the US (AP).

EU's Foreign Policy Chief Says EU's Weapons Stockpile Is Seriously Depleted Due To Providing Aid To Ukraine

EU foreign policy chief Josep Borrell 

Novinite: Borrell: The EU needs to Strengthen its Military Security 

“The European Union needs European forces to ensure its own security”, EU foreign policy chief Josep Borrell said in a blog post Sunday. 

"The new security environment shows that the EU must take greater responsibility for its own security. To achieve this, we need a modern and compatible European armed forces that will have a higher level of spectrum and strive to build abilities and strength," he wrote.  

Read more ....  

WNU Editor: The key part in the above post is this .... 

.... Borrell also acknowledged that the European Union's stockpile of military equipment has been depleted by aid to Ukraine. "The depletion of supplies as a result of the military support we have given to Ukraine is the most obvious example of the EU's defense shortcomings," Borrell wrote. EU's Foreign Policy Chief Says 

EU's Weapons Stockpile Is Seriously Depleted Due To Providing Aid To Ukraine  

We need to increase European defence capabilities, working better together -- Europa.eu  

EU’s weapons stockpile depleted – Borrell -- RT  

EU Depleted Military Stockpiles Helping Ukraine - Borrell -- Sputnik  

EU urges members to work together to renew weapons stocks -- AP  

European Commission Proposed an Armaments Plan to Ensure the Security of the EU -- Novinite

France And Germany Say No To Ukraine's Push For A Speedy Entrance To The EU

Newsweek: Ukraine's Hopes of Joining EU Crushed as France, Germany Resist 

Chancellor Olaf Scholz addressed the Bundestag (German parliament) on Thursday and expressed support for Ukraine but warned that there are "no shortcuts" on the road to membership of the economic bloc. 

His comments appear to reiterate remarks made by French President Emmanuel Macron on May 10 in which the newly re-elected leader of France said Ukrainian membership could take "decades." 

"There are no shortcuts on the way to the EU," Scholz told the Bundestag, arguing that carving out an exception for Ukraine would be unfair to other countries, specifically highlighting several Balkan nations. 

Read more ....  

Update #1: Ukraine blocked from speedy entrance to EU by France and Germany (NYPost)  

Update #2: 'No shortcuts' to Ukraine EU membership - Olaf Scholz (Times of Malta/AFP)  

WNU Editor: Ukraine has condemned this decision .... Ukraine slams 'second-class treatment' after Scholz dashes Kyiv's hopes of quick EU membership (Euronews).

Fourteen EU Countries Have Proposed A Rapid European Military Response Force To Intervene In A Crisis

Belgian special-forces soldiers during an exercise with EU countries in Belgium, November 30, 2016. REUTERS/Yves Herman  

Reuters: EU countries are again talking about forming a military rapid-response force 

* Fourteen EU countries have proposed a rapid military response force that could intervene early in crises. * They say the EU should create a brigade of 5,000 soldiers to provide urgent help to foreign governments, an official said. 

BRUSSELS (Reuters) - Fourteen European Union countries including Germany and France have proposed a rapid military response force that could intervene early in international crises, a senior EU official said on Wednesday, two decades after a previous attempt. 

The countries say the EU should create a brigade of 5,000 soldiers, possibly with ships and aircraft, to help democratic foreign governments needing urgent help, the official said. 

EU defence ministers will take up the idea on Thursday at a regular meeting chaired by EU foreign policy chief Josep Borrell, who has chided the bloc for reluctance to intervene more abroad, particularly in failing states such as Libya. 

The 14 countries are Austria, Belgium, Cyprus, Czech Republic, Germany, Greece, France, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Slovenia and Spain.  

Read more ....  

WNU Editor: This is what NATO is suppose to do. Not some independent EU brigade. 

More News On Fourteen EU Countries Proposing A Rapid European Military Response Force  

With An Eye On Russia, EU Opens 'Military Mobility' Project To NATO Allies -- RFE  

EU army: Majority of states back plans for 5,000-strong rapid response force -- Daily Express  

European Union lets Canada join major military project -- AP  

Closer EU military cooperation with U.S., Canada, Norway is quantum leap, Germany says -- Reuters  

Germany Calls US, Canada, Norway Joining EU Military Mobility Project a ‘Quantum Leap’ -- Sputnik

European Commission President Reassures EU Leaders She Will Ban Vaccine Exports If Suppliers Fail To Deliver Again

Commission President Ursula von der Leyen speaks during a news conference with European Portuguese Prime Minister Antonio Costa and European Parliament President David Sassoli (not pictured), in Brussels, Belgium February 12, 2021. REUTERS/Johanna Geron 

The Guardian: Ursula von der Leyen issues Covid vaccine export warning at EU summit 

Commission head reassures leaders she will ban vaccines leaving EU if suppliers fail to deliver again Ursula von der Leyen has reassured EU leaders she will ban coronavirus vaccines from leaving the EU if suppliers such as AstraZeneca fail to deliver again, as she faced questions over her handling of shortages. 

The European commission president’s pledge at a virtual summit came as leaders issued a statement promising to “accelerate the provision of vaccines”, with just 8% of the adult population having received a jab compared with 27% in the UK. 

Read more .... 

WNU Editor: She is feeling the heat .... EU leaders feel the pressure over handling of coronavirus pandemic (Politico).

New Poll Says Germany Is Rapidly Losing Faith In The EU

European Commission President Ursula von der Leyen adjusts her earphone during a debate on the state of play of the EU's coronavirus disease (COVID-19) vaccination strategy © REUTERS/Johanna Geron/Pool 

Daily Mail: Germany is rapidly losing faith in the EU amid continuing Covid jab chaos across almost all member states, new poll shows 

 * Over 60% said view of Brussels had worsened due to handling of vaccine roll-out 

 * Almost 70% of German citizens laid the blame at the feet of Ursula von der Leyen 

 * She admitted last week that 'mistakes were made' in approach to procuring jabs

 * Survey of 5,020 people was commissioned by German newspaper Der Spiegel 

Germany is rapidly losing faith in the EU amid continuing Covid jab chaos across almost all member states, according to a new poll. 

More than 60 per cent of German citizens said their view of Brussels had worsened due to its bungled handling of the vaccine roll-out. And almost 70 per cent of them laid the blame squarely at the feet of fellow German Ursula von der Leyen, the President of the European Commission, who admitted last week that ‘mistakes were made’ in the bloc’s approach to procurement of jabs. 

Read more .... 

WNU Editor: The pandemic has exposed a lot of problems within the current structure of the EU. Lack of leadership is one of them. But the bureaucracy has also shown itself to be too slow to respond to emergencies like the current pandemic. Case in point. Taking weeks to approve vaccines that other countries like the UK approved very quickly. 

But will Germany leave the EU because of all of these issues? 

Definitely not. The EU is structured to benefit Germany economically, and they are not going to give that up anytime soon.

A Look At Why The EU's Vaccine Program Became A Disaster

It was not until the autumn that the EU placed orders for the Pfizer/BioNTech vaccine. Photograph: Wilfredo Lee/AP 

Reuters: Countdown to 'catastrophe:' Inside Europe's fight for COVID shots 

BRUSSELS (Reuters) - In a meeting last week in the Europa building in Brussels, home of the European Union’s political leadership, diplomats for the 27 member states were desperate. 

The EU had paid billions of euros toward shots to curb a pandemic that was killing thousands of Europeans every day. Now vaccine-makers had cut back deliveries, and the EU was trapped in a public fight. 

“This is a catastrophe,” French ambassador Philippe Leglise-Costa told the Jan. 27 meeting, according to a diplomatic note seen by Reuters. 

It was a crucial moment in nearly two weeks of confusion and anger over the EU’s vaccine supply, which were to plunge the bloc into its deepest crisis since Ursula von der Leyen took over the executive European Commission just over a year ago. 

Read more .... 

Update: EU Covid incompetence leaves governments wanting vaccines, not excuses (Larry Elliott, The Guardian). 

WNU Editor: The difference between the UK vaccine rollout and the EU's is night and day. But at least some EU leaders are admitting that they screwed up .... EU chief admits COVID vaccine blunders (DW). And some are not .... EU circles wagons against Covid vaccine rollout criticism (Financial Times). 

Update: The video below is one example on how France missed a golden opportunity to obtain Covid vaccines.

 

EU Warns Kosovo And Serbia That Their Efforts To Join The EU Will Be In Jeopardy If They Move Their Embassies To Jerusalem

US President Donald Trump participates in a signing ceremony with Serbian President Aleksandar Vucic, left, and Kosovar Prime Minister Avdullah Hoti at the White House [Evan Vucci/AP]

Al Jazeera: EU warns Serbia over Jerusalem embassy move

EU voices 'concern', casting shadow over Serbia-Kosovo talks, as Kosovo president attempts to calm Muslims' fears.

The EU has voiced "serious concern and regret" over Belgrade's commitment to move its embassy in Israel to Jerusalem, casting a shadow over the resumption of Serbia-Kosovo talks.

President Aleksandar Vucic of Serbia and Kosovo Prime Minister Avdullah Hoti are to meet in Brussels for a second round of EU-brokered, face-to-face talks to resolve two decades of disputes after clashing in war.

The meeting follows a high-profile summit at the White House where Vucic and Hoti agreed to improve economic relations - and in Serbia's case, following in the US's footsteps, committing to moving its embassy from Tel Aviv to Jerusalem.

Read more ....

Update: EU warns Serbia, Kosovo over Israel embassy move (AP)

WNU Editor: Talk about undermining US efforts to bring Kosovo and Serbia together, while sabotaging US efforts in the Middle East.

After Five Days Of Talks EU Strikes Massive COVID-19 Recovery Deal

The Guardian: EU leaders seal deal on spending and €750bn Covid-19 recovery plans

Euro rises as heads of state finally thrash out agreement on day five

EU leaders have reached a historic agreement on a €750bn coronavirus pandemic recovery fund and their long-term spending plans following days of acrimonious debate at the bloc’s longest summit in nearly two decades.

As the meeting reached its fifth day, the 27 exhausted heads of state and government finally gave their seal of approval to a plan for the EU to jointly borrow debt to be disbursed through grants on an unprecedented scale, in the face of an economic downturn not seen since the Great Depression.

The end of the tortuous process was announced by the European council president, Charles Michel, who had been chairing the leaders’ long debates, with a single word on Twitter: “Deal!”

Read more ....

WNU Editor: There was too much money on the table. A deal had to be made. But when you look at the big picture, the money that is being pledged will only make a small difference to the recovery of the European economy.

More News On The EU Striking A Massive COVID-19 Recovery Deal

EU agrees on $2.1 trillion deal after marathon summit -- AP
Coronavirus: EU leaders reach recovery deal after marathon summit -- BBC
EU leaders reach deal on coronavirus recovery package -- DW
EU reaches historic deal on pandemic recovery after fractious summit -- Reuters
EU reaches landmark deal on COVID-19 recovery package -- UPI
EU reaches $1.2 trillion deal on coronavirus recovery after marathon Brussels summit -- ABC News Online

Europe Cannot Agree To A Post-Coronavirus Economic Recovery Plan

BBC: Coronavirus: Wrangling over huge EU recovery plan enters third day

EU leaders trying to hammer out a huge post-coronavirus economic recovery plan are now in an unscheduled third day of a testy summit in Brussels.

Some member states believe the proposed €750bn ($857bn; £680bn) package is too large and should come as loans, rather than grants.

Austria said there was still a "way to go", while Hungary's PM lashed out at his Dutch counterpart.

Germany's Angela Merkel said a deal might not be reached on Sunday.

The third day of talks comes after a record one-day rise in new infections worldwide.

The World Health Organization (WHO) said on Saturday that new cases rose by almost 260,000 in 24 hours.

Read more ....

WNU Editor: I am sure something will be agreed upon in the end.

More News On European Leaders Not Agreeing To A Post-Coronavirus Economic Recovery Plan

EU recovery fund plan hangs in balance on day three of deadlocked summit -- Reuters
EU struggles to agree virus recovery deal as global deaths surge -- France24
Merkel and Macron Walk Out on Rutte in EU Stimulus Dispute -- Bloomberg
EU summit: Merkel warns of no deal on coronavirus recovery fund -- Al Jazeera
'Mr. No, No, No' - Why Dutch PM Rutte plays role of EU bogeyman -- Reuters

European Recession Forecast For 2020

Zero Hedge: Deep European Recession Forecast For 2020

In its Summer Forecast published today, the European Commission downgraded its own projection from earlier in the year, making for an even grimmer outlook for the EU economy in 2020. The -7.4 percent contraction originally expected has been reassessed to -8.3 percent.

In the EC press release, the following context was given:

"The EU economy will experience a deep recession this year due to the coronavirus pandemic, despite the swift and comprehensive policy response at both EU and national levels. Because the lifting of lockdown measures is proceeding at a more gradual pace than assumed in our Spring Forecast, the impact on economic activity in 2020 will be more significant than anticipated."

Read more ....

WNU Editor: This forecast does not take into consideration of a second coronavirus wave.