Category
Latest news

EU Eyes New Military Fund to Buy Fighter Jets, Missiles, and Air Defense Jointly

2 min read
Authors
Amira_barkhush
Amira Barkhush
Author
EU Eyes New Military Fund to Buy Fighter Jets, Missiles, and Air Defense Jointly
German servicemen transport MIM 104 Patriot system batteries to the German compound of military training ground. Patriot systems are placed in Jasionka near Rzeszow, Poland, on January 23, 2025. (Source: Getty Images)

European Union finance ministers will gather this week to discuss the creation of a joint intergovernmental defense fund that would purchase and manage military equipment, charging member states a fee for its use.

This was reported by Reuters on April 7, citing a copy of the document prepared for the talks.

The project, developed by the Bruegel think tank at the request of Poland, which currently holds the EU presidency, offers a way to raise significant defense funding without increasing national debt—a key concern for countries with high debt levels, Reuters notes.

The talks come amid what the EU sees as a growing threat from Russia as European governments increasingly recognize they can no longer fully rely on the United States for security.

The fund, called the European Defense Mechanism (EDM), will be discussed on April 12 at an informal meeting of EU finance ministers in Warsaw. It is intended to complement existing defense financing initiatives and would be established through an intergovernmental agreement. Backed by significant capital, the fund would be able to borrow money on the market.

According to the outlet, the EDM would also be able to issue loans and include non-EU countries such as the United Kingdom, Ukraine, and Norway among its participants.

An additional advantage would be the creation of a unified European market for military equipment, helping to reduce costs and pool resources.

The Bruegel-developed plan envisions the fund focusing on “strategic components” — costly military infrastructure and equipment essential for modern armies, much of which has traditionally been supplied by the US.

These components include command-and-control systems, satellite reconnaissance and communications, the development of advanced weaponry such as fifth- and sixth-generation fighter jets, integrated weapons systems needed by multiple countries like strategic air defense, large-scale airlift capabilities, maritime logistics, as well as missile systems and nuclear deterrence.

In February 2024, Ukraine and its international partners signed a Protocol of Intent to launch the Demining Capability Coalition—one of eight coalitions formed under the Ukraine Defense Contact Group framework, and so far raised almost $55 million in partner contributions.

See all