The European Union has approved a €150 billion arms fund to bolster its defense amid fears of Russian attacks on EU soil and concerns over US reliability. The Security Action for Europe (SAFE) borrowing scheme was proposed by Brussels in March as part of efforts to boost the bloc’s defenses.
After months of negotiations, 26 countries voted in favor, with Hungary abstaining. France hailed the deal as a “major step forward” that asserts European preference for supporting domestic industries and reducing dependencies on the US.
The fund will allow 35% of the value of weapons to be sourced from manufacturers outside the EU and Ukraine. The approval is part of a package of measures that could unlock €800 billion of defense spending, with loosened budget rules.
London must still negotiate a separate deal with Brussels if it wants to access the new scheme. This move comes as the EU and UK agree on a new post-Brexit defense partnership, dubbed a “reset.”
Source: https://www.france24.com/en/live-news/20250527-eu-approves-150-billion-euro-loan-scheme-to-rearm