EU greenlights €1.5 billion Europe’s defense plan, some funds to go cooperation with Ukraine

According to the EU statement, Denmark, which holds the six-month presidency of the bloc, reached a preliminary agreement with European Parliament representatives to provide funding in the form of grants through 2027. Notably, one-fifth of the €1.5 billion is designated for defense cooperation with Ukraine.

The program’s goals include:

• To reduce the EU’s dependence on American weapons, streamline procurement.
• To boost the competitiveness of Europe’s fragmented defense and aerospace industries.

The program will be replenished with additional funds once the new EU budget takes effect. The proposed spending plan for 2028–2034 includes €131 billion for defense and space.

The agreement comes after more than a year of debate over the buy European rules, with France leading the push to prioritize European industry.

Under the deal reached on Thursday, October 16, the cost of components sourced from outside the EU and associated countries must not exceed 35% of the final product’s estimated value.

“The plan, known as the European Defense Industry Program, will boost our capacity to produce and supply critical defence equipment and ensure that we can respond swiftly and decisively to the increasingly complex security environment,” said Danish Defense Minister Troels Lund Poulsen.

New approach to defense

Yesterday, EU Commissioner for Defense Andrius Kubilius stated that the EU’s defense roadmap includes providing Ukraine with a reparations loan by the end of 2025.

He also noted that certain European defense initiatives could be implemented jointly with Ukraine.

In addition, Ukrainian Defense Minister Denys Shmyhal wrote yesterday that the defense plan presented by the European Commission for the coming years — and Ukraine’s inclusion in it — marks a pivotal moment in Europe’s approach to security.