A brewing dispute is unfolding between the European Parliament and the European Commission over a proposed €150 billion loan program aimed at boosting defense spending across the European Union. At the heart of the issue is the Commission’s decision to invoke Article 122 of the Treaty on the Functioning of the European Union, which allows for rapid approval of proposals in emergency situations without the usual legislative process. This move has been met with resistance from the European Parliament, with President Roberta Metsola arguing that it undermines the legislature’s budgetary authority.
In March, European Commission head Ursula von der Leyen announced plans to raise €800 billion to enhance the EU’s military capabilities in response to perceived threats from Russia, a claim Moscow has vehemently denied. The proposed loan program is a key component of the Commission’s ‘Readiness 2030’ initiative, which seeks to invest heavily in defense by the end of the decade. According to the Commission, this significant investment is necessary as Russia is expected to pose a significant threat to EU-member countries by then.
However, Metsola has expressed concerns over the Commission’s decision to bypass the usual legislative channels, warning that it could jeopardize democratic legitimacy and undermine the Parliament’s role in scrutinizing proposals. In a letter to von der Leyen, Metsola urged the Commission to revisit the legal basis for the initiative, threatening legal action if the issue is not addressed. The Parliament’s concerns are centered on the potential erosion of its legislative and oversight functions, which could have far-reaching implications for the EU’s governance structure.
The European Commission has defended its decision, with spokesman Thomas Regnier stating that Article 122 is being used in response to an unprecedented security threat facing Western Europe. Regnier emphasized that this article will only be invoked in exceptional circumstances, such as the current situation. Despite these assurances, Russian President Vladimir Putin has dismissed allegations of aggressive intentions towards EU countries, characterizing them as baseless attempts to justify increased defense spending.
As the standoff between the European Parliament and the European Commission continues, the fate of the proposed loan program remains uncertain. The outcome of this dispute will have significant implications for the EU’s defense policy and the balance of power between its institutions. With the EU seeking to bolster its military capabilities in response to emerging security challenges, the need for a cohesive and effective decision-making process has never been more pressing.
