EU approves €150 billion defence fund amid security concerns

European Union ambassadors have agreed on a major new defence initiative- an arms fund worth €150 billion to strengthen Europe’s military capabilities.

The fund, proposed by the European Commission in March, is a response to growing fears about Russia and uncertainty over whether the U.S., under President Trump, would continue to protect Europe.

Over the past three years, EU countries have already boosted defence spending by more than 30%, but leaders say more action is needed. The new programme, called Security Action for Europe (SAFE), will support collaborative defence projects across the EU and promote European-made weapons and technologies. To qualify for funding, at least 65% of a project's value must come from companies within the EU, the European Economic Area, or Ukraine.

Countries with Security and Defence Partnership agreements with the EU, such as the UK (which signed an agreement this week), may also qualify under additional conditions. This move opens the door for UK firms like BAE Systems to participate in SAFE-funded projects.

The Commission fast-tracked the legislation, skipping European Parliament approval and requiring only unanimous consent from all 27 EU countries. That consent was secured on Wednesday, with final ministerial approval expected on May 27.

European Council President Antonio Costa praised the decision, calling it a key step toward a more secure and united Europe.

Copied