The Minister of Economy, Trade, and Business, Carlos Cuerpo, asserts that «defense spending is here to stay» as he defends the proposal to increase European defense spending through debt issuance, which he presented last week at the informal meeting of European Union Finance Ministers held in Warsaw, Poland.
«Increased defense spending is here to stay, and we need to provide structural solutions as well as a quick response. We are talking about a European public good. For example, defense spending on the Eastern border ultimately has a positive impact on the entire EU. Just like with COVID, there is an asymmetric impact. In the case of COVID, we were the most impacted and therefore the most benefited from aid. We believe that this point of solidarity must be present here, and the majority of funds should go to the most affected countries,» he stated in an interview with El Mundo, as reported by Europa Press.
The minister argues that there must be a joint debt issuance, and part of that issuance should «not only go as loans to member states but as transfers to where they are most needed.» «Discussing defense spending as a percentage of GDP no longer makes sense,» he noted.
«Several member states reacted positively to the proposal, especially those aware that they will need more funds. Keep in mind that the most exposed countries are talking about reaching 5% of GDP or more in security and defense spending. If we do this in a disorganized manner and based on each one’s fiscal capacity, we will end up with spending below what we need, and it will not be efficient,» Cuerpo warned.
TARIFFS
Regarding the tariff issue, the minister assures that Catalonia is the most exposed region with a highly open productive sector and significant exports to the US. He emphasizes that «no company, whether Catalan, Andalusian, or Extremaduran, will be left without assistance.»
«The important thing is that assistance reaches the companies that need it. The most direct way is to identify those most exposed to the shock, and there are territories that will be more affected,» he stated.
