Eurogroup President Kyriakos Pierrakakis called Monday for shared defense contracts and more private investment, arguing that Europe’s longer-term security needs will deepen the fiscal challenge facing governments.
Eurozone finance ministers discussed defense financing in Brussels with NATO Secretary-General Mark Rutte. After the meeting, Pierrakakis said, “Europe must take responsibility for its own security.” His remarks framed defense financing as both a military and budget issue: governments must sustain security spending while managing public finances.
Pierrakakis said emerging threats point to several more years of high military expenditure, adding to pressure on national budgets already facing constraints. The EU’s national escape clause remains available through 2028, he said, giving member states more fiscal room as they adapt budget plans and seek sustainable funding.
He argued that countries buying comparable equipment through separate national deals miss savings that larger orders could deliver. Shared contracts could help governments secure better terms, support manufacturers’ expansion and strengthen supply networks, he said. The European Defence Agency said collaborative purchases represented 24% of the EU’s €115 billion in defense equipment procurement in 2025. The figure relates to concerns about the bloc’s readiness by 2030, covered in EconoTimes’ earlier report on the EU readiness goal.
Pierrakakis also called for research into critical technologies, continued support for Ukraine and closer cooperation between European and Ukrainian defense industries. He said private capital should reach startups and smaller businesses developing defense technology, identifying them as potential recipients of new investment.
The next related fiscal indicator is the European Commission’s upcoming assessment of 2027 draft budgetary plans, which Pierrakakis cited in his remarks.
