Opening statement

Mr Andrius Kubilius, Commissioner-designate for Defence and Space

 

Honourable Chairs,

Honourable Members of the European Parliament,

Dear colleagues,

 

Being twice a former Prime Minister and member of the Lithuanian and the European Parliaments for the last 32 years, I am humbled to return to this House and stand in front of you today as the European Union’s first-ever Commissioner-designate for Defence and Space.

***

As you know, Defence is one of the top priorities for the next Commission.

The Mission letter tasks me to help Europe prepare itself for “the most extreme military contingencies”. Which means – to prepare for possibility of Russian aggression against EU Member states.

Are we ready for such contingencies?

Today we are facing urgent and long-term challenges for European Defence:

1. First, we face existential and emerging threats, including conventional warfare, cyber warfare, hybrid attacks, and the militarisation of space:

• Recent intelligence assessments suggest Russia may test the resolve of the EU or NATO by the end of this decade. That is why, we must urgently enhance the EU’s readiness for potential military aggression. This is the way how we can deter it.
• Despite the fact that for time being it is difficult to predict what will be the policies of new United States administration in the nearest future, nevertheless we can predict that during forthcoming decades, the US is likely to increase its focus on the strategic challenge posed by China. This longer-term shift necessitates a more self-reliant European defence structure.

2. Second, EU Member States have accumulated significant underinvestment in defence – more than €1 trillion over the past decades. Such chronic underinvestment has left critical gaps in our capabilities and readiness

 

3. Third, the European Defence Equipment Market remains highly fragmented, which leads to inefficiencies, duplication of efforts, and lack of interoperability. Our defence capabilities are lagging behind from what is needed for our preparedness, as it is stressed in President Niinisto Report.

 

4. Fourth, our adversaries and strategic rivals are rapidly outpacing Countries like Russia and China have seen much more substantial increases in their defence budgets than in the EU27 over the past two decades. It looks like, that Russia in 2025, in Purchasing Power Parity terms, for military needs will spend more than all EU27 are spending for defence.

 

To address these challenges, I count on your support to bring a genuine European Defence Union to life. As President Niinisto says – we need European Defence Union not to wage war, but to maintain peace.

This calls for a paradigm change and systemic overhaul of European defence, based on close cooperation between us, Member States and with NATO.

There is no competition between NATO and the EU on defence issues, on the contrary.

The EU needs to use its unique budgetary and legislative powers to help develop the capabilities and resources needed for the implementation of NATO military deterrence and defence plans.

The three reports of Enrico Letta on the single market, of Professor Draghi on competitiveness and of President Niinistö on preparedness have provided food for thought. We now need to act and implement those recommendations.

We find ourselves at a time, when our peaceful future is challenged not only in Defence, but also in Space, which is becoming more and more important for our defence capabilities

We need urgent and bold solutions to ensure that future.

Such solutions demand maximum unity on our side.

That is why I look forward to work closely with you in achieving this task.

If I am confirmed, within the first 100 days of my mandate I will present, together with the High Representative, a White Paper on the Future of European Defence.

It will frame a new approach to defence and identify investment needs to deliver full-spectrum European defence capabilities based on joint investments and readying the EU and Member States for the most extreme military contingencies.

We must ensure a closer alignment between the identification of the EU’s defence capabilities needs and the corresponding investments.

We need to spend more, spend better, spend together, and spend European.

That is why I propose:

1. Immediate actions to continue implementation of ASAP and European EDIRPA programms , as well as of the new European Defence Industry Programme (EDIP). I stand ready to provide all the support needed to deliver on this key file.

 

2. Scaling up EU defence equipment production and demand by fostering information exchange between EU, Member States and NATO on defence resources and capability needs, in such a way potentially creating an aggregated EU defence industry output plan. By promoting joint procurement, with the possibility to scale up aggregated demand, we can help lower prices and stimulate longer-term contracts. We should also explore options for readiness pools and joint stockpiling based on EU military security criteria.

 

3. Long-term planning for the next Multiannual Financial Framework (MFF). We need to maximise the impact of the Union action, leverage the EU budget to deliver on key urgent EU priorities, give predictability to investment, strengthen synergies and simplify the EU financial landscape.

 

4. Proposals for urgent defence investment needs. According to Draghi report, Europe’s defence industry needs additional €500 billion over the next decade in order to remain competitive and meet current demand.We shall look into how to optimise EU financial support, increase national investments and leverage existing assets, now, even before the next MFF.

 

5. Innovative financing options. The European Investment Bank must play a larger role in defence financing, through further expanding it’s lending policy. This will also help to change lending policies of other European financial institutions.

 

6. I will work closely with Member States and the High Representative towards the design and implementation of Defence Projects of Common European Interest, including a European Air Shield and Enhanced cyber defence capabilities, which cannot be developed by any country alone.

 

7. We need to significantly increase both public and private investment in defence research and development while preserving defence specificities and we need to reinforce the European Defence Fund. We should also explore means to better mobilise EU support for high-risk, high-reward research projects, like it is done by DARPA agency in United States.

And most important: purchasing across borders within the EU should be equivalent to purchasing nationally. We must achieve a true Single Market for Defence.

This will involve:

• Further promoting the use of agreed civil and defence standards (NATO STANAG), and supporting mutual recognition of certification to ensure interoperability with Allies.

 

• Reviewing and strengthening the directives on defence procurement.

 

• Improving market access for all companies, especially SMEs, to foster innovation.

 

• Fostering more cross-border cooperation to create economies of scale.

 

Military mobility is vital for European security and defence, and we must speed up action. The EU can add significant value by facilitating movement across the EU and supporting necessary infrastructures and logistics.

And finally, as stressed by Commission President Ursula von der Leyen, the best investment in European security is investing in the security of Ukraine.

As NATO General Secretary Mark Rutte recently said in “Politico”: [Quote] “So far, our support has kept Ukraine in the fight. But we need to do much more in order to shift the conflict’s trajectory”. [End of quote].

Through urgent implementation of European Defence Industry Programme and with the help of the European Innovation Office in Kyiv, we will further strengthen our assistance and we will support mutual integration of the EU and Ukrainian defence and space industries.

That is one of the ways how we can do more…

***

Now I want to focus on Space, where till now the EU has developed world-class strategic space assets and worldwide recognised industrial competencies and know-how, such as Galileo, Copernicus and forthcoming IRIS², which are crucial also for our defence.

Our space capabilities are a great example of what the EU Member States can achieve working together in an area where none of them alone would succeed.

Looking into the future, according to experts, in 10 years, the global market for Space industry can be larger than €1 trillion.

As some experts are saying, the Space economy is now playing the role that 20 years ago was played by the Internet economy.

Europe must be part of this Space Revolution.

However, we are confronted with a new set of challenges:

 

1. Our space industry’s competitiveness is at risk. Due to lack of growth funding, we risk losing industrialisation and commercialisation of innovative European space start-ups. Our fragmented regulatory landscape further complicates matters.

 

2. Our space assets face increasing security pressures and vulnerability to hostile activities, our supply chains risk falling under unfriendly control.

 

3. Space remains underused in defence, despite its critical role in modern military operations.

 

To address these challenges, and with your support, if confirmed I will continue advancing the EU space flagships – Galileo, Copernicus, and IRIS², also enhancing their capabilities to provide special governmental services for our security needs.

I will work closely with European Parliament, Member States and the space industry.

I will rely on EU Agency for Space Programme and European Space Agency, striving for improving efficiency and effectiveness in implementation.

In addition to exploitation of established services, we shall concentrate on five key initiatives:

1. Ensuring European autonomous access to space. We must diversify the European launch service solutions and go for more competition. I expect positive outcome from the recent “Flight Ticket”, “Launch Challenger” and other initiatives, announced by the European Space Agency and the Commission, which will stimulate new launching projects. We need to step up the efforts for securing autonomous access to space to secure our European sovereignty.

 

2. Tabling the EU Space Law, to create single market for space and provide a common framework for security, safety, and sustainability in space that would ensure a consistent and EU-wide approach.

 

3. Building upon Draghi’s report, we must support the competitiveness of the EU space industry. It includes fostering the space data economy, boosting public investment in research and innovation, and intensifying support to innovative start-ups and scale-ups, including through agile and fast procurement.

 

4. Preparing the legal framework of the EU space policy for the next MFF, reflecting a new level of ambition of the Union as a global space power and international partner.

 

5. Preparing our space assets to respond to all threats in the space domain that may affect the security of the EU and its Member States, including the most extreme military contingencies. We shall build upon the EU Space Strategy for Security and Defence of 2023, in close cooperation with the High Representative. We shall further enhance our cooperation with Ukraine in the field of space.

 

These initiatives will enable European leadership in Space, thereby enhancing our technological sovereignty, competitiveness, and our security and defence capabilities and ultimately our strategic autonomy.

Till now our achievements in space were unique.

The EU space policy achievements demonstrate what we can achieve through unity, ambition, and strategic foresight. Let’s continue to be ambitious.

It should also inspire our approach to European defence.

***

And to conclude:

We do not want war. We want peace. Therefore, we must become ready for defence, both on land and in space, so that our challengers are not tempted to test us.

Only working together, we can build a stronger, more resilient and more autonomous European defence and space sector.

So that the EU is ready for the most extreme military contingencies, from wherever they will come. This is the only way to peace.

Thank you for your attention.

I stand ready to answer your questions.

(Photo: EPP Group)