European Union ministers approved a new €150 billion arms fund on Tuesday, May 27th. The fund will rely on joint borrowing by members, fuelling a number of loans for defence projects.
The move takes shape in response to fears of Russia expansion, amid EU concerns that Donald Trump’s U.S. administration is forcing its allies to fund their own military spending. Perhaps to cushion the financial blows, the scheme will include an emphasis on ‘buying European,’ by drawing where possible on a combination of EU and Ukrainian arms producers.
The SAFE borrowing initiative was first proposed by the European Commission in March 2025. The Polish presidency of the EU Council claimed that 26 member states voted in favour of the plan, with only one country abstaining. Longer term, efforts to create a Brussels-centred defence plan reflect the fragmentation of the previous world order.
