Brussels to use EU road-funding scheme to pay for Ukraine arms

BRUSSELS is to use funds reserved for building roads and airports in poor European Union states to boost weapons production.

The step taken yesterday ends a longheld ban on using the central budget to finance the arms industry.

It is part of the EU’S €2billion (£1.8billion) programme to make a million 155mm artillery shells to supply Ukraine and replenish national stockpiles that have been depleted in the wake of Russia’s invasion last year.

Under the scheme, dubbed “ASAP”, the European Commission would release €500 million to ramp up ammunition and missile production in the EU.

Member states would be allowed to supplement that money from the EU’S cohesion funds – programmes used to develop poorer parts and connect them with their richer neighbours. In the past the scheme spent billions to develop airports in Greece, Italy, Spain, Poland and Estonia, as well as build roads.

Sources said the move could be controversial with member states that believe EU law prohibits funding for defence purposes. The EU’S ruling treaty prohibits “expenditure arising from operations having military or defence implications”.

Ireland, Austria and Malta are neutral states, while Hungary has, so far, refused to provide weapons to Ukraine.

Thierry Breton, the commissioner responsible for ramping up weapons production, told a news conference: “Our analysis is that it is totally compatible with the treaty. Yes, investing in our defence will allow us to defend our democracy. And this is what we need to say to our fellow citizens.”

The Frenchman, an ally of Emmanuel Macron, who opposes UK and US firms taking part in the ammunition scheme, said governments could spend on arms factories if the funding fosters “skills and employment” in deprived regions.

“We cannot be naive,” Mr Breton warned critics. “It’s our responsibility to make sure that we do whatever we can to continue to protect ourselves together.”

The plans need to be fleshed out before states find out how much could be spent on weapons. The European Parliament must also vote on the proposals before they become a reality.