The European Union has approved an ambitious defense industry financing plan, authorizing borrowing of up to €150 billion, opening new opportunities for strengthening the defense capabilities of member states
According to sources familiar with the internal discussions, this decision was reached after prolonged negotiations, and its final text has already been agreed upon by diplomats, with an official vote scheduled for May 21. According to "European Truth," this initiative involves mobilizing significant funds from financial markets to rapidly increase investments in Europe's defense sector. Funding will be provided based on requests from member states, which will have the opportunity to invest in a wide range of defense areas: from the procurement of munitions, missiles, and artillery systems to air defense systems, missile defense systems, specialized equipment, small arms, and small unmanned aerial vehicles. The plan also includes financing for the development of counter-drone systems, electronic warfare, naval surface and submarine capabilities, cyber defense, and measures to protect critical infrastructure. Importantly, the share of components originating outside the European Union, EFTA/EES countries, or Ukraine must not exceed 35% of the total final product cost. This emphasizes the EU’s goal of developing a self-sufficient and competitive defense industry that reduces dependence on external suppliers. Moreover, joint procurement and investment opportunities are open not only to EU member states but also to candidate countries, their security partners, and third states with which relevant agreements have been concluded. Additionally, within this initiative, provisions are made for bilateral agreements with candidate countries, potential candidates, and other nations that support defense partnerships with the EU. This creates an additional mechanism for active international cooperation in security and defense. In the initial phase of this large-scale program, events surrounding Ukraine will play a special role. According to sources within the EU, the European Commission has already announced that Ukraine’s military-industrial complex will have equal rights to participate in this initiative alongside EU defense industrial entities. This opens new opportunities for Ukraine’s defense industry within the partnership framework, as well as support in modernizing Ukraine’s defense capabilities amid Russian aggression. Another key point is the EU’s promise to allocate €1 billion from profits derived from Russian assets to fund the procurement of weapons and combat equipment for Ukraine’s defense industrial complex. This will serve as an additional incentive for the development of Ukraine’s defense sector and help strengthen its position in the global context. Overall, the approval of this program reflects the EU’s strategic aim not only to build a powerful and self-reliant defense industry but also to intensify cooperation with neighbors and partners worldwide, ensuring security and stability within the region and beyond.