The European Union on Tuesday approved the creation of a €150 billion arms fund, driven by fears of a potential future Russian aggression and uncertainty over the United States’ security guarantees on the European continent, Reuters has reported.
The approval, made by EU country ministers meeting in Brussels, marked the final legal step in launching the European Security Action Framework (SAFE), which uses joint EU borrowing to provide loans to member states for joint defense projects.
The proposed measures were supported by 26 out of 27 EU member states, with Hungary abstaining.
“We approved SAFE, the first large-scale EU-level investment program in defense,” said officials from Poland, which currently holds the EU presidency. “The more we invest in our security, the better we deter those who wish to harm us.”
The European Commission, the EU’s executive body, originally proposed the fund in March due to growing fears among European leaders that a potential Donald Trump presidency might no longer protect them from external threats.
Alarmed by Russia’s 2022 invasion of Ukraine and fears of being Moscow’s next target, EU countries have already increased defense spending by more than 30% over the past three years.
However, EU leaders claim this is still not enough.
Moscow has labeled the EU’s rearmament efforts as a provocation based on a “fabricated narrative” of Russian threat.
The EU initiative aims to break down national barriers by funding joint projects between member states and strengthening the continent’s defense industry.
