Wednesday 28 / May / 2025
Brussels: The European Union (EU) on Tuesday approved the creation of a 150 billion-euro ($170.7 billion) EU arms fund, driven by fears of a Russian attack in the coming years and doubts about US security commitments to the continent.
The approval, by ministers from EU countries meeting in Brussels, was the final legal step in setting up the Security Action for Europe (SAFE) scheme, using joint EU borrowing to give loans to European countries for joint defence projects.
The measure was backed by 26 of the EU's 27 member countries, with Hungary abstaining, diplomats said.
The European Commission, the EU's executive body, proposed the fund in March 2025 as fears grew among European leaders that they could not be sure that US President Donald Trump's administration would defend them from attack.
Alarmed by Russia's 2022 invasion of Ukraine and fearing they could be Moscow's next target, EU countries have already increased defence spending by more than 30% in the past three years. But EU leaders say that is not enough.
The EU initiative seeks to break down national barriers by financing joint projects between EU countries and includes a strong "buy European" element as it aims to boost the continent's defence industry.
