EU Commission Proposes 1.5 Billion Euro Common Defense Industry Package
TEHRAN (Tasnim) – The European Commission on Tuesday proposed a new 1.5 billion euro ($1.63 billion) defense industry program, which would be financed from the European Union budget for the period between 2025 and 2027.
The new program calls on the 27 EU member states to procure at least 40% of their defense equipment collectively by 2030 and aims to have the value of intra-EU defense trade to represent at least 35% of the EU defense market, it added, Reuters reported.
"To increase European defense industrial readiness, member states need to invest more, better, together, and European," the EU Commission said in a statement.
The Russia-Ukraine war has prompted many European countries to increase defense spending, though EU officials have argued purely national efforts are less efficient and want EU bodies to play a greater role in defense industrial policy.
The EU Commission also seeks to help the European defense industry prepare better for existing and potential major challenges such as a sudden surge in demand for large amounts of artillery ammunition.
The Commission also proposed to use a share of the profits made on frozen Russian assets to fund arms purchases for Ukraine.