The European Union has taken an important step in its efforts to restructure and modernize its armed forces by reaching an agreement among its 27 member states to establish a new 1.5 billion euro (approximately 1.73 billion dollar) defense fund.
The fund, called the European Defense Industry Program (EDIP), was first proposed by the European Commission more than a year ago. However, there had been long-standing disagreements among member states over how the program would be financed and managed. The fund is being evaluated within the framework of EU defense preparations launched in the wake of the Russia-Ukraine War, which began in 2022. Under the program, at least 65% of the components of the defense materials to be purchased must be produced within the EU. However, limited purchases will also be possible from major producers such as the US and the UK. According to a report by Reuters, EU ambassadors approved the program in principle this week. Official signatures are expected to be signed on Monday. The program will then be discussed in detail in the European Parliament. However, 10 countries—Bulgaria, Croatia, the Czech Republic, Estonia, Finland, Latvia, Lithuania, the Netherlands, Romania, and Slovakia—argued that the EU should accelerate its rearmament process and procure more defense materials from non-member countries.
https://www.chinadaily.com.cn/a/202506/20/WS6854c73ea310a04af22c7729.html
