T-Online: EU opens all Gates for Money Flush: EURO 800 Billion new Debt to Re-Arm Europe

The EU Council, i.e. all heads of EU governments, have agreed to loosen the EU debt ceiling and allowed for a huge flush of new debt money: EURO 800 billion will be very fast taken in by the EU which shall allow the member states to purchase EU made military equipment and arms. The justification for this new mega debt: Russia. All member states except Hungary have agreed, in a second resolution, to support Ukraine “as long as it takes” and to insist that a peace agreement shall only be possible with Ukraine’s and Europe’s participation. Hungary opposes to a prolongation of the war and refers to the US peace initiative which aims to stop the war rapidly.
The debt mechanism for the 800 billion seems to be a EU common debt financing instrument with a draw down possibility by each individual member state for their own weapons purchases which transfers the part of the EU debt to the purchaser. The question remains what will be the consequence if one member state does not service the debt – a common debt?
In view of the EURO 800 billion arms investment, the stock and debt markets have reacted positively as a deficit spending is always creating immediate profits – till the moment of the repayment of the debt which can result in higher taxes, reduced spending and financial market disruptions with much hardship in the real economy.
Europe’s armies are insufficiently equipped. Critics say that Europe got a free ride on the military power of the US, spending instead the cash on social welfare and other nice projects. Europe needs to get used to a new reality where global changes occur and where past negligence or daring adventures show adverse results. Europe must be prepared for a worst case scenario in Ukraine: the total collapse. The EU and each member state must be prepared for a new, larger refugee stream and endless costs to support the civil infrastructure in the rest of Ukraine. This worst case scenario may occur in case no peace agreement is made and Russia can provoke Ukraine’s military and civil collapse. Hardly the 800 billion can be invested in arms within such a worst case short time: there are not enough production capacities in the EU. The money will be needed anyway otherwise for the millions more refugees and for Ukraine’s state expenses. In the long run, the re-arming of Europe may be of advantage and helpful to prepare for any eventuality. The EU also soon will need to draft soldiers, probably via an obligatory service which has been abandoned by most of the member states.
Spain abolished compulsory military service in 2001, France in 1996, Germany in 2011, Belgium in 1994 and the UK all the way back in 1963. Iceland has no national army, while Ireland has never had compulsory military service. These peaceful times will change and EU governments are planning or already introducing obligatory service.