“Europe must build a war economy without delay.”

ITwo years of war were at hand before the European Union considered developing a “war economy.” Two years have passed since the start of Russia’s invasion of Ukraine. For the past two years, Europe, along with its allies, has struggled to use existing capabilities to supply weapons and ammunition. Two years on, there is an urgent need to provide the resources necessary for the phrase “war economy” to take on its full meaning. This means immediately increasing aid to Ukraine and laying the groundwork for a war economy to respond to the destabilizing threat that President Vladimir Putin’s Russia poses to Europe. This is how we strengthen Europe’s ability to maintain peace on the continent. And we can’t wait two years now. The time to act is now.

In defense, as in other areas, Europe must adapt without delay and build a war economy. Most of Europe’s productive capacities, institutions, and legal and administrative procedures have not evolved since the beginning of Russia’s invasion of Ukraine.

We must take immediate steps to accelerate the production of strategic products and ensure the construction of energy, telecommunications, cyber and transportation infrastructure that is in short supply today. Our budget structure has not changed and we are unable to make the necessary efforts to sustain our war economy. With current procedures, American troops would not have landed in Normandy in 1944, and de Gaulle’s Free Army would not have left in 1941, but several years later.

Loans and financial guarantees

The wars launched by President Putin against Georgia in 2008, Donbass in 2014, and Ukraine in 2022 pose a growing threat to European democracies, our national security, political systems, economies, and societies. It is necessary to understand that this is the case.

Europe must urgently adapt to this new reality. It is necessary to adopt a law similar to the National Defense Protection Act. This law, adopted by the U.S. Congress in 1950, allows for immediate action to be taken to alleviate shortages in military equipment and other assets deemed essential to defense. Therefore, the President of the United States can order private companies to prioritize implementation of government orders. The National Defense Protection Act also allows the government to support the production of certain important businesses, goods, and industries, or to require the installation of certain equipment in production plants. Loans and financial guarantees required for these projects may also be granted by the state under law. This enabled the launch of Operation Warp Speed ​​to combat Covid-19 in 2020.

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