Teamwork Makes the Dream Work: How the EU Can Tackle Big Challenges

The European Union (EU) has some serious issues to tackle. Defense, energy, and research are areas where working together could make a real difference. But there's a problem: not everyone agrees on borrowing money as a team. Some countries, like Germany, are hesitant about shared debt. However, the EU has already done it once, borrowing 800 billion euros during the COVID-19 pandemic. So, it's not a completely new idea. Why does this matter? The EU needs to boost its defense spending because of threats from Russia. Also, competition from China and the U. S. is pushing Europe to innovate and lower energy costs. The International Monetary Fund (IMF) suggests that the EU should double its spending in these areas. That's an extra 100 billion euros. The IMF also recommends that the EU borrows money together to fund these shared goals. The idea is to enjoy the benefits now and pay back the debt later.The EU already has some joint defense projects funded by the EU. But more money might be needed. Creating a European energy market is another new idea. The EU needs to switch to clean energy and build networks to transport electricity across borders. Investing in research and development would benefit all 27 EU countries and their 450 million citizens. Working together is crucial here. Doing things at the EU level could save money. For example, coordinating energy markets could cut clean transition costs by 7%. Joint defense procurement could save 30% compared to national efforts. The EU is discussing these ideas for their next budget, but no decisions have been made yet.