EU Embarks on 150 Billion Euro Defense Fund Amid Rising Russian Threat

European Union ambassadors have approved a new arms-buying fund aimed at strengthening Europe's defense capabilities in response to the perceived threats from Russia and doubts about future U.S. support. The 150 billion euro fund will finance various defense projects, with the European Commission having proposed the initiative in March.

Known as Security Action for Europe (SAFE), the initiative aims to dismantle national barriers by financing collaborative projects between EU countries. A significant aspect of SAFE is its "buy European" approach, designed to boost the continent's defense industry. To be eligible for funding, at least 65% of a project's value must originate from companies located within the EU, the European Economic Area, or Ukraine.

The legislation, which was agreed upon by ambassadors of the 27 EU member countries, is expected to be finalized by ministers in May. Antonio Costa, president of the European Council of EU leaders, hailed the agreement as a critical step toward a more robust Europe, underscoring its importance in joint European defense investments.

(With inputs from agencies.)