Munich Security Conference: EU and NATO statements focusing on defence and Ukraine

Like so many of you, I have been coming here for many years. From the times when it was an exclusively transatlantic audience to today, when we see political, business and thought leaders from right across the world. This is a testament not only to the great success of the Munich Security Conference. But it also reflects on how the rest of the world impacts our security and our transatlantic relationship.

Our task here in Munich is not just to describe this new geopolitical landscape, but to shape it. And shape it in a way that ensures that our transatlantic values endure, and our interests are defended. Because there is a clear attempt by some to build spheres of influence. Competing visions of the world order are leading to a more transactional approach to global affairs. And Europe has to change to thrive in this new reality. We have to be smart and clear-eyed about what is ahead of us. From a rogue Russia on our borders to challenges to our sovereignty and our security. And we should not underestimate the disruptive potential of intense competition – or even a bipolar conflict between China and the US. This may be uncomfortable to hear. But this is a time for plain speaking.

The good news is that, as we approach this new year of change, Europe is already reforming. The pandemic, the war in Ukraine and the full-scale energy crisis have been brutal times for all of us. But in Europe they showed us also that when we adopt an urgency mentality, we are a force that can move mountains. From vaccines to the unwavering support of Ukraine or energy security, Europe has shown that it can master the moment. We must adopt this urgency mentality more permanently.

This is why what you have seen in the first 100 days of the new Commission is the tone and speed I intend to set for the whole mandate. We are strengthening our competitiveness. We are stepping up on defence. We are enabling innovation for AI. Action is what really matters in this new reality. And we know a stronger Europe is better for all of us. A stronger Europe works withthe United States to deter the threats we have in common as partners. And this is why we believe that trade wars and punitive tariffs make no sense. Tariffs act like a tax. They drive inflation. The hardest hit are inevitably workers, companies and the middle classes. On both sides of the Atlantic. And we know how quickly tariffs can affect essential transatlantic supply chains. We do not believe this is good business. And we want to avoid a global race to the bottom. But as we have already made clear, unjustified tariffs on the EU will not go unanswered. Let me speak plainly. We are one of the world’s largest markets. We will use our tools to safeguard our economic security and interests. And we will protect our workers, businesses and consumers at every turn. Of course, we are ready to find agreements that work for all – to work together to make each other more prosperous and more secure.

Ladies and Gentlemen,

At the heart of this is, of course: defence and the security of Ukraine, our Continent and the wider world. In this room we all feel what is at stake – that this is a moment in history. More great challenges loom. There has been a lot of talk in the last few days. But it is always instructive to look beyond the words. And to recognise that we are just at the beginning of this process.

Let us take stock of the starting positions: Contrast the approach taken by President Zelenskyy to that of President Putin. In the most difficult of circumstances, President Zelenskyy is prepared to work towards a peace that honours the sacrifice of his country and his fallen compatriots. As Volodymyr Zelenskyy said from the start, Ukraine wants peace more than anyone else. One that is just and lasting so that the horrors of the last years are not revisited ever again. On the other hand, President Putin says he is willing to meet, but on what terms? It is up to him to demonstrate that his interest is not to prolong this war. It is up to him to show that he has given up his ambition to destroy Ukraine. And let me be very clear. A failed Ukraine would weaken Europe, but it would also weaken the United States. It would intensify the challenges in the Indo-Pacific and threaten our shared interests. Because what we have seen is – the Authoritarians of this world are carefully watching whether there is any impunity if you invade your neighbour and violate international borders. Or whether there are real deterrents. They are watching us, what actions we choose to take. This is why it is so important that we get this right.

Ukraine needs peace through strength. Europe wants peace through strength. And as President Trump has made clear: the United States is firmly committed to peace through strength. So I believe that by working together, we can deliver that just and lasting peace. There is a lot that Europe already has brought to the table. Historic amounts, actually. Financially and militarily the overall support amounts to EUR 134 billion. That is more than anybody else has contributed. This includes USD 52 billion of military assistance – on par with the US. And we have put in place hard hitting sanctions, substantially weakening Russia’s economy. We have broken one taboo after another and smashed our reliance on Russian gas, making us more resilient – permanently. And we are about to do more. We are working with Ukraine on their EU accession. Because Ukraine is part of our European family. And this is where their future lies.

Ladies and Gentlemen,

This leads me to the discussions we have had in Europe over the course of the last few weeks. Many in the security circles in Europe were confused – some even worried – by the comments made by senior US officials earlier this week. But we need to be honest here. And we need to avoid outrage and outcry. Because if we listen to the substance of the remarks, we do not only understand where they are coming from but recognise there are some remarks we can agree on. Because yes, both the EU and the US want an end to the bloodshed. We want a just and lasting peace, one that leads to a sovereign and prosperous Ukraine. And Ukraine should be given solid security guarantees. But perhaps what resonates with me the most is the need for Europe not only to speak frankly but also to act accordingly. So let there be no room for any doubt. I believe that when it comes to European security, Europe has to do more. Europe must bring more to the table. And to achieve this, we need a surge in European defence spending. Currently the EU27 are spending around 2% of GDP on defence. And yes, our defence spending went up from just over EUR 200 billion before the war to over EUR 320 billion last year. But we will need to increase that number considerably once again. Because from just below 2% to above 3% will mean hundreds of billions of more investment every year. So, we need a bold approach.

Let us take one step back. In previous extraordinary crises, look at what we did. We empowered Member States with extra fiscal room by activating the escape clause. In simple terms, we empowered Member States to substantially increase public investments linked to the crisis. I believe we are now in another period of crisis which warrants a similar approach. This is why I can announce that I will propose to activate the escape clause for defence investments. This will allow Member States to substantially increase their defence expenditure. Of course, we will do this in a controlled and conditional way. And we will also propose a wider package of tailor-made tools to address the specific situation of each of our Member States. From their current level of defence spending to their fiscal situation. Second, for a massive defence package we also need a European approach in setting our investment priorities. This will allow the investments in much needed defence projects of common European interest. Thirdly, we will step up our work to accelerate the accession process of Ukraine to the European Union. We have made significant progress already, but now is the time again to move mountains. My message is: you see Europe adapting, Europe stepping up, Europe making a difference – immediately.

Ladies and Gentlemen,

What is being discussed here today is ultimately about us. Our prosperity, our economy, our security, our borders, our ability to make good on Europe’s enduring promise of peace. Our values do not change – they are universal. But because the world is changing, we have to adapt the way we act. We need a Europe that is more pragmatic, more focused, more determined. One that will counter its threats, one that will leverage its enormous strengths and power, one that is standing by Ukraine and its partners. There is a lot that this Europe can do – and it will rise to the moment.

Long live Europe.

Source – EU Commission