EU ministers approve new 150 billion euro fund for arms procurement

On Tuesday, the 27th of May, EU ministers in Brussels approved a 150 billion euro armaments fund. The decision comes amid growing concerns about a possible Russian attack in the coming years and uncertainty over US security guarantees for Europe, reports Reuters.
The approval by EU ministers was the final legal step to set up the Security Arrangements for Europe (SAFE) scheme, which would use common EU borrowing to provide loans to European countries for joint defence projects.
It was backed by 26 of the 27 EU member states, with Hungary abstaining, diplomats said.
“We have approved SAFE, the first ambitious investment programme for defence at EU level,” Poland said on X. It currently holds the EU Presidency.
“The more we invest in our security, the better we will deter those who wish to harm us.”
The European Commission, the EU’s executive body, started talking about the fund in March, when concerns grew among European leaders that they could not be sure that US President Donald Trump’s administration would help in the event of an attack.
Worried about Russia’s 2022 invasion of Ukraine and fearing they could become Moscow’s next target, EU countries have already increased defence spending by more than 30% over the past three years. But EU leaders say this is not enough.
Moscow has criticised the EU’s new defence plans, calling them an effort to start a war based on “imaginary” Russian threats. But European leaders remain concerned, pointing out that Russia made similar claims before its full-scale invasion of Ukraine.
The EU initiative aims to facilitate cooperation between countries on joint defence projects by providing funding for them. It also encourages the purchase of European-made weapons to strengthen the continent’s defence industry.
To qualify for SAFE funding, 65% of the value of a project must come from companies located in the EU, the wider European Economic Area or Ukraine.
However, companies from countries that have concluded a security and defence partnership with the EU may also be eligible if they meet other conditions.
The UK signed such an agreement with the EU this month, bringing UK companies such as BAE Systems one step closer to participating in SAFE projects.
The Commission used the fast-track procedure to proceed with the adoption of the legislation, bypassing the European Parliament and only requiring the approval of EU governments.