EU countries are discussing the introduction of a pan-European financial instrument — the European Defense Mechanism (EDM), which is intended to complement the already approved €150 billion loan program under the EU Rearmament Plan. This mechanism is expected to allow countries to procure military equipment and technology centrally, rather than individually, reports the Ukrainian Foreign Intelligence Service.
The EDM is aimed at contributing to the formation of a single arms market in the European Union, streamlining the defense budgets of each member state, enhancing the interoperability of defense systems, and pooling resources.
Within the framework of this unified financial instrument, EU countries will be able to carry out strategic planning and define common defense needs, including the development and procurement of high-cost equipment and advanced technologies. It is anticipated that by 2030, Europe will be able to reduce its military dependence on the United States if it unifies its procurement system and establishes a joint European defense market.
Portugal and Poland have preliminarily supported the initiative. In contrast, France, Germany, and Norway believe that existing financial instruments, such as the European Investment Bank and the EU Rearmament Plan, should be implemented before creating new structures.
Spain has proposed the creation of a new defense fund offering non-repayable grants to strengthen the EU’s borders and support Ukraine, using €200 billion in frozen assets of the Russian central bank.
European leaders recognize the growing threat posed by Russia, which is why the approval process for defense initiatives in Brussels is progressing, albeit slowly. Most countries support the general idea of the EDM, but agreeing on the financial model and legal mechanisms will require several rounds of negotiations.
