Germany proposes ‘two-speed’ EU to hasten defense buildup

PRAGUE — Germany is spearheading an initiative to create a “two-speed” European Union, proposing that a core group of six major economies bypass the bloc’s traditional consensus-based decision-making to accelerate defense cooperation and industrial competitiveness amid mounting geopolitical pressures.

German Finance Minister Lars Klingbeil and his French counterpart, Roland Lescure, jointly convened finance ministers from Poland, Spain, Italy and the Netherlands on Jan. 28 for a video conference to establish what is being called the E6 format of the six leading European economies.

“Now is the time for a Europe of two speeds,” Klingbeil said at a Berlin event ahead of the meeting.

In a letter of invitation to his colleagues, obtained by Defense News, Klingbeil presented a four-point agenda that makes defense spending a priority alongside a Savings and Investment Union, strengthening the Euro and securing critical raw materials.

“Europe has to become stronger and more resilient,” Klingbeil said in the letter. “Work towards this goal needs to be sped up in all dimensions. Continuing as before is not an option.”

Klingbeil’s two-page document calls for enhanced collaboration on defense spending and urges making defense a key focus in the next EU multiannual budget. The letter also calls for “turning defense into an engine for growth” for the continent’s economy.

The German finance minister described the Jan. 28 call as a kick-off meeting, saying that he hoped to have a follow-up meeting on the sidelines of the next EUROGroup meeting, a gathering of finance ministers of the Euro-zone.

The two-speed concept for deeper European integration, while not entirely new to EU discussions, is gaining fresh momentum as the bloc confronts what many here describe as an urgent need to reduce dependence on the United States for defense.

However, the approach risks fracturing European cohesion by alienating EU members who are on board with deeper integration but are not part of the group of six. German officials have indicated that the format would remain flexible and possibly open to additional participants.

The initiative also reflects a strategic recalibration in Berlin’s European partnerships.

Chancellor Friedrich Merz signed a comprehensive German-Italian “Protocol on a Plan of Action for strategic cooperation” with Prime Minister Giorgia Meloni on Jan. 27, which commits both nations to “urgently and jointly achieve European defence readiness by closing capability gaps and strengthening the European pillar in NATO.” They will collaborate on integrated air and missile defense, unmanned systems, naval vessels, electronic warfare, and potentially a common land combat platform.

Simultaneously, Berlin is deepening ties eastward: Merz announced in November that Germany and Poland are drafting a new defense policy agreement to be concluded in 2026, with the Bundeswehr already increasing joint exercises with Polish forces and expanding cooperation on drone detection and neutralization.

The initiative comes as Germany itself undergoes a historic military buildup. Berlin’s 2026 budget allocates €82.69 billion ($98.92 billion) for the Bundeswehr, with an additional €25.5 billion ($30.5 billion) from a special defense fund, as Merz pursues his stated goal of making Germany “the strongest conventional army in Europe.”

At the World Economic Forum in Davos on Jan. 22, Merz reaffirmed plans for Germany to increase defense spending to 5% of GDP, calling it “a huge increase” necessary to assert European sovereignty.

All this comes against the backdrop of strained relations in the EU’s traditional Franco-German growth engine, precipitated by an impasse in the Future Combat Air System project meant to design Europe’s next-generation fighter jet, and the challenges posed to collective EU action by unanimity rules among the Bloc’s 27 member countries.