EU reach deal on €150B Arms Fund
EU ambassadors approve €150 billion SAFE fund for defense projects. Fund aims to counter Russia and reduce reliance on U.S. military protection.
A €150 billion ($170 billion) arms financing initiative aimed at bolstering the bloc's defense industry and reducing reliance on U.S. protection was signed off on by European Union envoys. The Security Action for Europe (SAFE) fund was proposed by the European Commission in March amid rising concerns over Russian aggression and uncertainty about U.S. defense commitments under President Donald Trump.
The legislation was fast-tracked without European Parliament input, requiring only the consensus of all 27 EU member states—achieved this week after two months of negotiation.
SAFE Fund Targets Industrial Boost, Strategic Coordination
The fund will offer loans to support collaborative defense projects across the EU. To qualify, at least 65% of a project’s value must originate from companies based in the EU, the European Economic Area, or Ukraine. However, countries with signed defense partnerships—like the UK—are also eligible under further conditions.
“An important step toward a stronger Europe,” said European Council President Antonio Costa, calling the deal a fulfillment of pledges made by EU leaders in March.
British Defense Firms Among Key Beneficiaries
Britain's recent security pact with the EU grants firms like BAE Systems access to the SAFE fund, opening the door for deeper UK-EU defense industrial integration despite Brexit. This provision aligns with the fund’s goal to streamline defense cooperation across European allies.
Defense spending across EU nations has already increased by more than 30% in three years. The SAFE fund is designed to solidify that growth into sustainable production and procurement.