Ireland backs €150bn defence plan as EU moves to rearm

Ireland is to sign up to a major new EU defence initiative that will allow member states to jointly procure military equipment as the bloc seeks to rapidly rearm in the face of Russian aggression.

The EU regulation, known as Security Action for Europe (Safe), relaxes procurement rules for defence purchases and allows countries to work together to develop and acquire military capacities.

The Government believes becoming a member will allow Ireland to secure military equipment at a lower cost and faster pace – in some cases up to two years earlier than under existing procurement arrangements.

The Safe initiative also makes €150 billion available to member states, in the form of low-interest, long-term loans, to rapidly increase defence spending amid doubts over the United States’s future commitment to European security.

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The decision to sign up to the Safe regulation represents a significant step towards closer co-operation between Ireland and the EU on defence issues.

It is likely to draw significant criticism from pro-neutrality campaigners who will view it as further erosion of Ireland’s non-aligned status within Europe.

During previous discussions on the proposals, Taoiseach Micheál Martin said joint defence procurement is about achieving value for money and would have no impact on neutrality.

The Safe initiative is a core pillar of the European Commission’s ReArm Europe Plan, which aims to inject €800 billion into the EU’s defence industry over the coming years.

Tánaiste and Minister for Defence Simon Harris is expected to announce the decision to join Safe today.

Ireland will use its membership of the plan to focus on acquiring artillery, cyber and air defence systems as well as replacing the Army’s fleet of armoured personnel carriers.

Other projects include the purchase of ammunition, artillery, ground combat capabilities and drones.

Under Safe, Ireland will partner with other countries to purchase this equipment, resulting in cost savings. In some cases, the equipment will be partially financed by EU loans obtained by the partner countries.

For example, if Germany is acquiring a new batch of artillery shells, it will be able to amend its order to include Ireland as a partner. This would allow Ireland to obtain a small portion of the shells at a much lower price than if it had ordered them alone.

Safe’s goal is two-fold; to build up the military capabilities of member states and to support a native EU defence industry independent of the United States.

In order to qualify for Safe support, 65 per cent of the value of purchases must be from an EU country or Ukraine.

Mr Harris is expected to argue that joining Safe will allow Ireland to speed up the acquisition of capabilities such as air defence and sonar systems, two priority spending areas for the Government.

He said he is determined to “provide for the development of a full spectrum of Defence Force capabilities that will bring Ireland in line with other similar-sized European countries”.

“I have agreed, therefore, that the Department of Defence should leverage the common procurement opportunities offered under the Safe Regulation as much as possible to progress delivery of Ireland’s defence capabilities needs as quickly as possible.”