EU Proposes European Competitiveness Fund for Defence and Innovation

The European Commission is poised to propose a European Competitiveness Fund dedicated to resilience, defence, and space, according to its leadership on Wednesday. The initiative will feature in the impending 2028-2034 budget proposal, targeting investment in strategic sectors and innovation.

European Commission President Ursula von der Leyen and EU foreign policy chief Kaja Kallas highlighted the significant investment gap in defence. Writing to European leaders, they emphasized the need for substantial funding in defence through a specific window within the upcoming fund.

EU leaders are slated to deliberate on defence priorities at a Brussels summit on Thursday. This follows a commitment made at a NATO summit to increase defence spending to 5% of GDP.

(With inputs from agencies.)