On Tuesday, the European Commission proposed a new EUR 1.5 billion (USD 1.63 billion) defense industry program to 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 percent of their defense equipment collectively by 2030 and aims to have the value of intra-EU defense trade represent at least 35 percent of the EU defense market, it added.
"To increase European defense industrial readiness, member states need to invest more, better, together, and in a European way," the EU Commission said in a statement.
Russia's war in Ukraine has prompted many European countries to increase defense spending, though EU officials have argued that 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.
"To increase European defense industrial readiness, member states need to invest more, better, together, and in a European way," the EU Commission said in a statement.
Russia's war in Ukraine has prompted many European countries to increase defense spending, though EU officials have argued that 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.
Source: Reuters
