Stepping up investment in defence was on the agenda as EIB president Nadia Calviño met European finance ministers

Heads of state approved the changes in Brussels today, after Germany rejected a Commission proposal to put an additional €100B into the EU’s multiannual budget. The deal frees up a €50B aid package for Ukraine

The fund is intended to stimulate investment in SMEs that are working to develop novel defence technologies

The EU money will incentivise joint purchases of military equipment by member states and help SMEs get to market. But the fund runs out in mid-2025 and plans for a longer term strategy are held up

Following the Russian invasion, the latest grants awarded by the European Defence Fund back technologies to improve the security of Europe. That is in contrast to earlier awards when the emphasis was on expeditionary capabilities

Romanian MEPs on the research and industry committee say the European Defence Fund should allocate grants more evenly across member states

A three-year pilot programme designed to lay the ground for the EU’s first move into funding defence R&D did not fulfil its purpose. A more strategic approach is needed to ensure research is translated into new defence technologies

By head count, SMEs represent 40% of those awarded EDF money. But their share amounts to only 20% of the total funding

Budget drawn up in shadow of the pandemic and before Russia invaded Ukraine does not reflect Europe’s military needs and new security priorities  

Innovation is critical to protect Europe from security threats and to ensure its companies are competitive in the global market. Current funding won’t deliver say MEPs