European common debt
Think tank: Centre for European Reform
Author(s): Luigi Scazzieri; Sander Tordoir
November 5, 2024
This report from UK think tank the Centre for European Reform presents an analysis of EU defence bonds, their benefits and feasibility.
European security is under threat and Europeans are trying to strengthen their defences. However, addressing long-standing gaps in military capabilities will require time, a sustained fiscal effort, and enhanced co-ordination. Constraints on national budgets have led policy-makers to explore new funding mechanisms to enhance defence investments, with the idea of EU defence bonds gaining traction among European leaders.
A new CER paper ‘European common debt: Is defence different?’ by Luigi Scazzieri and Sander Tordoir presents an analysis of EU defence bonds, their benefits and feasibility. Defence bonds have a variety of potential uses, from supporting Ukraine and enhancing domestic European R&D to promoting joint procurement and financing efforts to bolster borders and critical infrastructure.
