EU Defence Should Not Rely on Common Debt, Says Terras
European Union member states should strengthen their defence budgets using national resources rather than relying on common EU borrowing, according to Riho Terras, a prominent lawmaker from the European People’s Party.
In an interview with Euronews’ Europe Today programme in Strasbourg, Terras argued that issuing joint EU debt to finance defence spending would be a mistake. Instead, he said, individual countries should take responsibility for increasing their own military investment.
The idea of common borrowing has resurfaced in recent months as EU leaders debate how to respond to growing security challenges. French President Emmanuel Macron has been among the strongest advocates of joint debt, suggesting it could help fund defence capabilities and emerging technologies such as artificial intelligence.
Terras, however, expressed clear reservations. He said borrowing on financial markets was not the most effective way to address Europe’s defence needs and warned against creating new financial mechanisms that could prove politically divisive.
The issue is expected to feature in discussions at an informal gathering of EU leaders later this week at Belgium’s Alden Biesen castle. Former Italian prime ministers Enrico Letta and Mario Draghi are due to attend, with Draghi reportedly set to argue in favour of deeper European integration, including stronger fiscal coordination.
Terras appeared unconvinced by such proposals. He said there was little point in reopening debates about treaty change, noting that reforming the Lisbon Treaty was currently unrealistic. Instead, he called on EU leaders to focus on measures that could be implemented immediately.
While rejecting joint debt, Terras stressed that Europe must still act collectively on security. He said the continent could no longer depend on the United States to guarantee its defence and should be prepared to shoulder more responsibility within NATO.
Referring to recent discussions in Washington, Terras noted that US officials increasingly expect European countries to match their commitments with concrete spending. He added that some allies, including Spain, are frequently cited in the US as falling short of their defence obligations.
Fresh from meetings with American lawmakers, Terras also sought to reassure Europeans about transatlantic ties. He said members of the US Congress had made clear that Washington remains committed to NATO, but expects Europe to demonstrate greater resolve and investment in its own security.
As debates over defence financing intensify, Terras’ comments highlight a growing divide within the EU over whether security should be backed by shared financial tools or remain firmly in national hands.
