The EU's new defence commissioner is open to eurobonds

The EU's first defence and space commissioner is open to issuing joint bonds or using unspent money from post-pandemic funds to raise vital funds for building up the military and boosting competitiveness.

The former Lithuanian prime minister, tentatively awarded the post yesterday (17 September), still has to be approved by the European Parliament, but he already sees several possibilities to raise much-needed additional finance in future.

"We are looking at how we can raise money as quickly as possible," Kubilius, currently an MEP in the centre-right European People's Party, told Euronews after his appointment, adding: "we have the theoretical possibility of common debt."

While funding for defence could be hiked in the next seven-year budget framework, "that will not come until 2028. We do not have the luxury to wait until 2028," he said. 

Kubilius also mentioned redirecting unspent money from the EU's post-pandemic Recovery Fund (RRF), using the financial sector bailout pot the European Stability Mechanism, or mobilising finance from the European Investment Bank and private institutions.

Mario Draghi, ex-Prime Minister of Italy, has also suggested issuing joint EU bonds to raise some of the additional €750bn to €800bn the bloc needs per year to stay competitive. Others have suggested joint borrowing to fund specific projects, such as a proposed EU air defence system.

Yet the eventual solution will have to be agreed with member states, Kubilius admitted —and the likes of Germany and the Netherlands have strongly rejected Draghi's call.

Since von der Leyen promised to create Kubilius' new defence post earlier this year, analysts have warned of a potential overlap with the work of Estonia's Kaja Kallas, who will succeed Josep