Cable diplomacy: Securing influence, data and global rules

In response to Russia’s war of aggression against Ukraine and the prospect of a diminishing U.S. role in the European security architecture, the European Commission has put forward the ReArm Europe/Readiness 2030 package, which combines temporary exemptions from EU fiscal rules with the creation of a €150 billion loan instrument (SAFE) to bolster defence spending. This discussion paper argues that the proposal has limited fiscal impact and is unable to address the persistent lack of coordination among Member States, as it does not adequately incentivise joint procurement. Instead, the authors suggest to future-proof the EU's fiscal rules and develop an EU grants-mechanism tied to strategic cooperation, greater parliamentary oversight, and a broader concept of security that includes climate and democratic resilience. Finally, the paper also explores how increased defence demand risks fuelling excessive profits and market concentration.