NATO chief Mark Rutte warns that ESG investment regulations are allowing the defense industry to become infested with drugs and pornography, saying such “insane” regulations will reduce defense spending and defense efforts to counter threats from China and Russia. He said it was hindering investment in the industry.
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Europe’s “crazy” environmental, social and governance (ESG) regulations are hampering defense spending and investment, leaving the continent far behind China and Russia in terms of military readiness, according to NATO chief Mark Rutte. That’s what it means.
ESG regulations are established to ensure that financial institutions such as banks, pension funds and asset management funds protect the environment and make “ethical” investments in line with United Nations (UN) sustainability goals. I am. North Atlantic Treaty Organization (NATO) Secretary General Rutte said the regulation is having a negative impact on the defense ecosystem.
Rutte’s comments came as European NATO members come under heavy pressure from US President Donald Trump to increase defense spending. President Trump has threatened to encourage Russia to attack unless NATO allies increase defense spending to his liking.
Speaking at Davos, Switzerland, where the World Economic Forum (WEF) is being hosted, Rutte said that Russia, which has emerged as Europe’s biggest security threat in recent years, is producing weapons four times faster than Europe. He said that he was in a situation where he said:
Mr. Rutte says it is strange that the defense team is hardened by drugs and pornography in the regulations.
Rutte said it was “insane” that Europe’s investment regulations were inundating the defense industry with drugs and pornography.
“We still haven’t been able to explain to pension funds and banks the difference between spending on illegal drugs and pornography on the one hand, and collective defense on the other. And somehow it’s all in the same basket. This is crazy, but , this is one of the reasons why I am reaching out to the 1 billion people living in NATO territory and asking them: Go to your bank or pension fund and tell them you want to be protected and you want them to spend more of your money,” Rutte said, according to the Daily Telegraph. Ta.
Rutte stressed that maintaining the ability to fight Russia in the event of an attack remains a priority, and said regulations in place would undermine that ability. He also said that China is producing weapons four times faster than Europe.
“Across NATO, we produce in one year what Russia produces in three months in terms of ammunition,” Rutte said. This is proof that we have a big problem and that is the reason for my appeal, yes we are safe now but in 4-5 years we will have to increase production and spending. If we don’t, we’re going to be in real trouble.”
Separately, François Michel, CEO of Belgian defense company John Cockerill, said ESG regulations risked “destroying the European defense industry”.
“It is clear that there are financial problems with ESG regulation, as whatever regulations are in place across Europe, finance is driving the separation of the defense industry from civilian infrastructure and civilian activities.” is destroying Europe’s defense industry and I completely agree with the fact that this is a problem that we absolutely need to solve and that public spending is not the only solution. Private capital must flow efficiently between savings and businesses,” Michel said, according to the Telegraph.
