Dutch Finance Minister pushes for joint European arms procurement

Dutch Finance Minister Eelco Heinen has voiced strong support for a new joint procurement mechanism for defense equipment in Europe, calling it an effective way to increase security without raising costs. Speaking after a meeting with European Union finance ministers in Warsaw, Heinen emphasized that such a system should also be open to non-EU countries, including Norway and the United Kingdom.

“You get more security for the same euro,” Heinen said, endorsing the principle of pooled defense purchasing as proposed in a policy paper by the Brussels-based think tank Bruegel.

The Bruegel paper, discussed during the ministerial meeting, proposes the creation of a European Defense Mechanism (EDM) to centralize the purchase of military equipment. Heinen acknowledged the potential of the proposal, stating, “There are elements in it that are very interesting.” He explained that through joint procurement, standardized product specifications, and coordinated tenders, European countries could benefit from economies of scale, leading to lower prices for defense materials.

Other EU finance ministers reportedly recognized the importance of the proposal. According to Heinen, discussions primarily focused on the design of the new mechanism.

One key point of contention is the proposed involvement of the European Stability Mechanism (ESM), the EU’s financial backstop. The ESM’s leadership has expressed interest in taking on this new role. Heinen rejected that idea outright. “We must truly preserve that fund for financial stability,” he said, warning against diverting the ESM from its original purpose.

Heinen also pushed back against calls from some EU member states to allow the EDM to issue subsidies for defense spending. “I believe defense investments should be made through national budgets,” he said, clearly opposing centralized subsidy schemes at the European level.

Another major point of debate is who should control the new procurement system. Heinen said the proposed EDM should not fall under the European Commission. Instead, he argued for an intergovernmental organization structure, saying it would allow the Netherlands to build in stronger safeguards and would likely inspire more confidence among other participating countries.

“Through an intergovernmental organization, we can build in more guarantees,” Heinen said. “That could also create more trust for other participating countries.”