EU Commission to propose dedicated defence and space investment in new fund

Foreign ministers and NATO Secretary General Mark Rutte meet, in Rome

European Union High Representative for Foreign Affairs and Security Policy Kaja Kallas walks, on the day of a meeting on the latest developments in Ukraine and security in Europe, at Villa Madama in Rome, Italy, June 12, 2025. REUTERS/Guglielmo Mangiapane/File Photo

Source: REUTERS

The European Commission will propose dedicating part of a new European Competitiveness Fund to resilience, defence and space, the EU executive's leadership said on Wednesday.

The Commission is expected to put forward a plan for a competitiveness fund to invest in strategic sectors and innovation as part of an upcoming proposal for the bloc's 2028-2034 budget.

"The gap to fill, after years of underinvestment and under attention to defence, is large," European Commission President Ursula von der Leyen and EU foreign policy chief Kaja Kallas wrote in a letter to European leaders on Wednesday.

"This is why the Commission’s proposal for the next Multiannual Financial Framework will also address the need for substantial funding for defence in the years to come through a dedicated Resilience, Defence and Space window of the European Competitiveness Fund," they wrote.

RECOMMENDED FOR YOU

Hungary's Magyar calls for stronger military amid European uncertainty

EU leaders are expected to discuss defence priorities during a summit in Brussels on Thursday.

The discussion will take place a day after a NATO summit in The Hague, where alliance members committed to boosting defence spending to 5% of Gross Domestic Product.

This article was produced by Reuters news agency. It has not been edited by Global South World.

By Reuters