The rules and agencies established under US leadership in the aftermath of World War II are in the air for negotiations, and the Irish Finance Minister and Eurogroup President Pashkar Donohoe told Euroneuz in an interview.
The continent is trying to strengthen its military resources as the US threatens to withdraw its defense assistance from Europe. But according to Donohoe, this is not the only challenge Europe has to face after Donald Trump arrives at the White House.
“The theme of what’s going on right now is the rules established in the aftermath of World War II, the American leaders. They are now being challenged and they are in contest,” Donohoe said.
“All the institutions we know, trade and tax rules are open for renegotiation, and that’s what’s happening right now.”
Donohoe has made it clear that we should not assume that progress should not be inevitable by French President Emmanuel Macron and former Italian Prime Minister Mario Draghi. “Our Europe is deadly. We could die,” Macron said, but Draghi “slowly talked about the risk of painful death.
For the president of the Eurogroup, “Even if you can’t die, all political order can decline. That’s one of the many lessons we have from our study of history. The European Union is no exception.
Skepticism of joint borrowing for defense
As Ireland’s Minister of Defense, Donohoe remains skeptical of general borrowing for defense. He advocated general borrowing to recover from the Covid-19 crisis, but does not believe that state contributions should bridge the gap in funding needed for Europe.
“Advances can be made in the procurement field. Therefore, if there are defensive aspects to the next numerous financial frameworks (MFFs) and the EU budget, we believe that it is more likely that members will be less than the national contributions that contribute to their security and the security of the EU.
He noted that the EU is still paying back the Covid-19 Recovery Fund (RRF), designed to make the EU economy more resilient during the pandemic. He said an RRF evaluation is necessary before the EU embarks on a new commitment.
He highlighted the need for a more global picture of defence spending, as defense will become an aspect of the budget dimension of the European Union for the next few years. Member States will soon begin negotiations for the next spending period between 2028 and 2034.
“It is difficult to make that argument, and it is difficult not to divorce us from the broader reality of negotiating the new European Union budget first.
“Secondly, the next generation of EU is a new form of general borrowing that has to deal with the pandemic crisis many years ago, and it is still happening, still valued, and in relation to both, it is still being relocated, relocated in the future and addressed in the future.”
Donohoe has served for a third term as the leader of the Eurogroup and so far the names of other possible candidates have not been made public. He said he felt encouraged by the level of support he currently has, but he admitted that no one was too sure of what to expect next.
“There can be so many things that can happen over the weeks in the world we are in, but I’m encouraged by the support I’ve received now,” Donohoe concluded.
