EU leaders’ statements at informal retreat to discuss European defence

Press statement remarks by German Chancellor Olaf Scholz

Link: https://newsroom.consilium.europa.eu/permalink/259533 (German)

(e-translated and edited) 

“Check against delivery”

A very good morning!

Europe is strong. We are the largest economic area in the world and highly successful. That is why it is right that we are coming together here in Brussels today to discuss how we can shape Europe’s future together.

From my perspective, one thing is clear. This also applies to Germany itself: Europe is our most important national interest. That is why I want to highlight three points that we will be discussing here.

First: Security and Defense

We must strengthen them. That is why it is good that the European member states are discussing how they can contribute within NATO in a way that ensures we are well-positioned and can guarantee our own security. It is a significant step forward that all countries are now spending at least two percent of their economic output on defense, with only a few member states still needing to reach that goal. This will strengthen Europe’s security and defense capabilities.

Additionally, we need concrete agreements regarding our defense industry. More cooperation must be possible, even without being constrained by competition rules. We must be able to procure jointly more effectively, and we need a steady, large-scale, joint production capacity to ensure that we can ramp up production when necessary without having to start from scratch. These are crucial security and defense issues that we need to discuss.

Second: Economic Strength

We will also discuss our economic strength. There are key topics to address to ensure progress, such as how we can maintain our leadership in artificial intelligence and quantum computing, in analytical biology, and in many other areas crucial for economic prosperity. This also includes our traditional industries such as steel, chemicals, and the automotive sector.

At the same time, we must contribute to ensuring that globalization continues to generate prosperity—not only in Europe but worldwide. This is why we will naturally discuss our cooperation with the United States in depth. Both the U.S. and Europe benefit from trade in goods and services. If tariff policies were to complicate this, it would be detrimental to both the U.S. and Europe. It is clear that as a strong economic bloc, we can shape our own policies and respond to tariff measures with tariff measures. If necessary, we will do so. However, our perspective and goal should be to pursue a cooperative approach. Discussing this will be an important point.

Third: Migration and Internal Security

A recurring and pressing issue, which I will be discussing with many of my colleagues here, is how we tackle our shared challenges, particularly those arising from irregular migration. Europe is always part of the solution. This is evident from the agreement on the Common European Asylum System, which will come into effect next year. I won’t hide the fact that this reform is very much in Germany’s interest.

With this new system, we will have more procedures at the external borders, which will also be better protected. Refugees will be registered everywhere, and we will have a solidarity mechanism among member states. Moreover, Germany will be able to return individuals whose asylum procedures should take place in other countries more quickly and efficiently—without the difficulties caused by the current rules. This is a major step forward that Europe has made possible.

That is why it is important to me that Germany, as the largest country in the heart of Europe, implements these European regulations. The necessary legislative proposals are already ready for a vote in the German Bundestag. The federal government has introduced them, particularly for the swift implementation of the Common European Asylum System, which will allow us to act more effectively.

My appeal to the opposition in Germany, specifically to the CDU/CSU, is to stop blocking these crucial laws aimed at reducing irregular migration within the framework of European regulations. The decline in irregular migration could progress more effectively—building on the successes we have already achieved—if the CDU/CSU were not obstructing these important measures.

In addition, if we consider the domestic security laws that are also being blocked, such as the Federal Police Act, it becomes clear that the CDU/CSU’s obstructionist stance, motivated by party politics, is preventing further reductions in irregular migration. It hampers our ability to turn away individuals who should undergo their asylum procedures in other European countries, and it endangers internal security. This must stop. Before the next Bundestag election, these laws to limit irregular migration and enhance internal security must be passed.

Questions & Answers

Question: Chancellor, over the weekend, Mark Rutte called for greater German efforts in defense spending. How should such defense expenditures beyond the two-percent target be financed?

Chancellor Scholz: One thing is clear: We have an agreed process. First and foremost, all European countries must spend more than two percent of their economic output on defense. Germany has achieved this with the special defense fund I implemented. From 2028, once these funds are exhausted, we will need to find additional resources to permanently increase the defense budget by another 30 billion euros per year. This will happen, and it will be a major task.

Additionally, within NATO, we have now clearly agreed to redefine our capability goals. We will then see what concrete consequences this entails.

Question: You want to avoid a trade war with the U.S. But President Macron, for example, does not want to buy defense capacities from the U.S. How should this issue be handled?

Chancellor Scholz: There will be an agreement among European member states regarding the joint industrial development of the defense sector. In my view, this will always include cooperation with our NATO partners. I am confident that we will reach an outcome that benefits both European development and cooperation with partners such as the UK, Norway, Canada, and the U.S.

Question: (inaudible)

Chancellor Scholz: Europe is economically strong. We are a major economic bloc with highly competitive companies operating globally. We are deeply integrated into global markets and have extensive trade opportunities worldwide. Therefore, it is always beneficial—both for the U.S. and Europe—that we cooperate. The attempts to establish free trade agreements have not been successful so far, but in my view, they can always be revisited. What is clear is that mutual understanding requires awareness of our own strength. Europe can take action.

Question: (inaudible)

Chancellor Scholz: (spoken in English, without translation)

Question: Chancellor, after your recent meeting with Keir Starmer, where do you see the biggest challenges in Europe’s defence industry?

Chancellor Scholz: We will cooperate between the UK and the European defence industry. The key issues are economies of scale and consolidation. Companies must be freed from restrictive regulations that hinder their collaboration. Governments must be able to join each other’s procurement processes without initiating entirely new tenders. If we achieve that, we will benefit from greater scale efficiencies. Less bureaucracy, more determination!

Thank you very much.