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Brussels, |
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The Future European Defence
By eEuropa - 7 MINUTES READ
Brussels, May 26, 2025
The EU's Ongoing Defence Initiatives
Three years after Russia’s invasion of Ukraine, the European Union is adding hard cash and concrete steps to its promise of “strategic autonomy”.
Since February, EU has proposed a new industrial policy for arms makers, launched a €150 billion loan scheme for joint procurement and—more quietly—issued the first dual-use rail standard so troops can travel with their kit across 27 countries.
Yet the effort still divides capitals and their parliaments, and it is happening against an arms-spending race led by the United States, China, Russia and India.
Let’s look at the EU’s six latest moves to strengthen European Defence.
Since February, EU has proposed a new industrial policy for arms makers, launched a €150 billion loan scheme for joint procurement and—more quietly—issued the first dual-use rail standard so troops can travel with their kit across 27 countries.
Yet the effort still divides capitals and their parliaments, and it is happening against an arms-spending race led by the United States, China, Russia and India.
Let’s look at the EU’s six latest moves to strengthen European Defence.
1. European Defence Industrial Strategy (EDIS)
Unveiled on 5 March 2024 the Joint Commuication "A new European Defence Industrial Strategy (EDIS)" is the first joint blueprint from the European Commission and the High Representative, working with the European Defence Agency (EDA), aimed at boosting Europe’s defence-industrial base through to 2035. War in Ukraine forced the EU to treat “high-intensity warfare” as a real possibility on its own soil. EDIS answers that wake-up call by outlining how the Union can raise its industrial readiness and cut its dependence on non-EU kit.
Unveiled on 5 March 2024 the Joint Commuication "A new European Defence Industrial Strategy (EDIS)" is the first joint blueprint from the European Commission and the High Representative, working with the European Defence Agency (EDA), aimed at boosting Europe’s defence-industrial base through to 2035. War in Ukraine forced the EU to treat “high-intensity warfare” as a real possibility on its own soil. EDIS answers that wake-up call by outlining how the Union can raise its industrial readiness and cut its dependence on non-EU kit.
Strategic lines of EDIS
a. Strengthen the European Defence Technological and Industrial Base (EDTIB) - Steer national budgets towards collaborative, EU-made projects and expand common financing tools such as the European Defence Industry Programme (EDIP), initially budgeted at €1.5 billion for 2025-27.
b. Improve industry responsiveness - Make sure EU factories can switch rapidly from peacetime output to surge mode and can deliver equipment “in any circumstance and time horizon.”
c. Mainstream a defence-readiness culture - Integrate security needs into wider EU policies—from raw-materials strategy to energy and transport regulations.
d. Team up with like-minded partners - Deepen ties with NATO allies and offer a special pathway for Ukraine’s defence industry to plug into EU supply chains.
Concrete goals
EDIS sets measurable, non-binding milestones to judge progress:
2. White Paper for European Defence and the ReArm Europe Plan
On 12 March 2025, the Commission published a White Paper, that maps the capability gaps—long-range fires, missile defence, heavy transport—and calls for “at least 40% of equipment” to be bought jointly by 2030.
3. Militar Mobility
On 4 April 2025, The Commission delivered an Implementing Regulation on the EU-wide authorisation for military personnel carriages, which lets a single certificate, issued by the European Agency for Railways, cover “go-everywhere” carriages that run with freight trains—part of the bloc’s Military Mobility agenda.
4. European Defence Industry Programme (EDIP)
On 19 March 2025, the Commission proposed a draft Regulation on the European Defence Industry Programme (EDIP). This is the first legislative step under the 2024 European Defence Industrial Strategy (EDIS); €1.5 bn from 2025-27 to co-finance joint orders and scale-up lines for artillery shells, drones and air-defence systems. Parliament’s industry-defence committees gave it an initial green light (70 for, 46 against, 8 abstentions).
5. Security Action for Europe (SAFE)
On 19 March 2025 the Commission proposed draft Council Regulation COM(2025) 122 final, which would establish the Security Action for Europe (SAFE) by strengthening the European Defence Industry Instrument. The scheme would offer up to €150 billion in European Investment Bank-backed loans to Member States that place joint orders and commit to “buy European”.
If the Council approves the Regulation (on 21 May, EU Ambassadors have already approuved it)—despite the European Parliament’s objection to being excluded from the legislative process—governments will have six months to submit their project lists. Germany and Poland have welcomed the initiative, whereas France, Italy and Spain worry about the extra debt it may create.
a. Strengthen the European Defence Technological and Industrial Base (EDTIB) - Steer national budgets towards collaborative, EU-made projects and expand common financing tools such as the European Defence Industry Programme (EDIP), initially budgeted at €1.5 billion for 2025-27.
b. Improve industry responsiveness - Make sure EU factories can switch rapidly from peacetime output to surge mode and can deliver equipment “in any circumstance and time horizon.”
c. Mainstream a defence-readiness culture - Integrate security needs into wider EU policies—from raw-materials strategy to energy and transport regulations.
d. Team up with like-minded partners - Deepen ties with NATO allies and offer a special pathway for Ukraine’s defence industry to plug into EU supply chains.
Concrete goals
EDIS sets measurable, non-binding milestones to judge progress:
- ≥ 35 % intra-EU defence trade by 2030
- ≥ 50 % of national procurement budgets spent inside the EU by 2030, rising to 60 % by 2035
- ≥ 40 % of equipment bought through collaborative programmes by 2030
2. White Paper for European Defence and the ReArm Europe Plan
On 12 March 2025, the Commission published a White Paper, that maps the capability gaps—long-range fires, missile defence, heavy transport—and calls for “at least 40% of equipment” to be bought jointly by 2030.
3. Militar Mobility
On 4 April 2025, The Commission delivered an Implementing Regulation on the EU-wide authorisation for military personnel carriages, which lets a single certificate, issued by the European Agency for Railways, cover “go-everywhere” carriages that run with freight trains—part of the bloc’s Military Mobility agenda.
4. European Defence Industry Programme (EDIP)
On 19 March 2025, the Commission proposed a draft Regulation on the European Defence Industry Programme (EDIP). This is the first legislative step under the 2024 European Defence Industrial Strategy (EDIS); €1.5 bn from 2025-27 to co-finance joint orders and scale-up lines for artillery shells, drones and air-defence systems. Parliament’s industry-defence committees gave it an initial green light (70 for, 46 against, 8 abstentions).
5. Security Action for Europe (SAFE)
On 19 March 2025 the Commission proposed draft Council Regulation COM(2025) 122 final, which would establish the Security Action for Europe (SAFE) by strengthening the European Defence Industry Instrument. The scheme would offer up to €150 billion in European Investment Bank-backed loans to Member States that place joint orders and commit to “buy European”.
If the Council approves the Regulation (on 21 May, EU Ambassadors have already approuved it)—despite the European Parliament’s objection to being excluded from the legislative process—governments will have six months to submit their project lists. Germany and Poland have welcomed the initiative, whereas France, Italy and Spain worry about the extra debt it may create.
European Defence Agency (EDA). The European Defence Agency (EDA) was established in 2004 to support EU Member States in developing defense capabilities, fostering military cooperation, and enhancing the European defense industry. The agency plays a crucial role in harmonizing investments, promoting research and innovation, and improving operational readiness within the EU.
Key Initiatives by the EDA
Key Initiatives by the EDA
- Permanent Structured Cooperation (PESCO)
- Facilitates deeper military collaboration among 26 EU Member States.
- Supports joint projects such as military mobility, next-generation tanks, and maritime surveillance.
- European Defence Fund (EDF)
- Provides financial support for collaborative defense research and technology development.
- The EU has allocated nearly €8 billion (2021-2027) for military innovation and capability enhancement.
- Military Mobility Programme
- Aims to streamline the movement of troops and military assets across the EU.
- Enhances logistics infrastructure to support rapid deployment in crisis situations.
- Cooperative Defence Procurement
- Encourages joint defense acquisitions to reduce costs and avoid duplication.
- Focuses on standardizing military equipment across EU forces.
- Defence Innovation Hub
- Supports cutting-edge military technologies such as AI, cyber defense, and autonomous systems.
- Encourages cooperation between startups, industry, and research institutions.
- Defence Spending and Cooperation Goals
- The EU has outlined non-binding objectives to enhance defense cooperation and efficiency:
- By 2030, intra-European arms trade should account for 35% of the EU defense market.
- 50% of procurement should be done at the EU level.
- 40% of defense equipment should be acquired through joint procurement programs.
- These measures aim to promote a "Buy European" approach and strengthen the EU defence industry.
- The EU has outlined non-binding objectives to enhance defense cooperation and efficiency:
Conclusion
Europe is pledging unprecedented sums to close its security gap, but the trans-Atlantic—and global—context shows just how high the bar now sits.
Put bluntly, even if Brussels’ new SAFE loans reach their full €150 billion and every euro is spent inside the Union, Europe would still be adding barely 5 % to the continent’s annual defence bill—a fraction of the step-change the United States or China can make in a single budget cycle.
That disparity explains the ferocity of the debate now playing out in EU capitals. Germany and Poland see SAFE as insurance against a wavering Washington; France, Italy and Spain fret about piling debt on already stretched treasuries. Yet the numbers above also underscore the cost of doing less: in the two years it takes to argue over “buy European” clauses, rivals can pour the equivalent of SAFE’s entire loan volume into fresh kit.
Europe is now matching its defence rhetoric with real money and a detailed industrial plan. Turning that promise into usable military mass will hinge on two levers: first, credible joint orders that give factories the confidence to expand; second, national budgets that can keep pace with a world that is, regrettably, arming faster than at any other point this century.
The next six months—when governments must file their SAFE project lists—will show if the EU can convert collective resolve into collective capacity before the spending gap yawns even wider.
- In 2024 world military spending hit $2.72 trillion, up 9.4 % in real terms—the sharpest jump since the Cold War.
- The United States alone accounted for $997 billion (+5.7 %), 37 % of the global total and two-thirds of NATO outlays.
- China recorded its 30th consecutive rise, reaching an estimated $314 billion (+≈6 %).
- Russia’s war economy drove spending up 38 % to $149 billion (7.1 % of GDP) and roughly one-third of its entire budget.
- Counting every European country (49, including Russia), defence outlays climbed 17 % to $693 billion in 2024 and are now 83 % higher than in 2015.
- Within that, the EU-27 spent roughly €279 billion ($302 billion) in 2023; early EDA data point to a double-digit increase again in 2024.
Put bluntly, even if Brussels’ new SAFE loans reach their full €150 billion and every euro is spent inside the Union, Europe would still be adding barely 5 % to the continent’s annual defence bill—a fraction of the step-change the United States or China can make in a single budget cycle.
That disparity explains the ferocity of the debate now playing out in EU capitals. Germany and Poland see SAFE as insurance against a wavering Washington; France, Italy and Spain fret about piling debt on already stretched treasuries. Yet the numbers above also underscore the cost of doing less: in the two years it takes to argue over “buy European” clauses, rivals can pour the equivalent of SAFE’s entire loan volume into fresh kit.
Europe is now matching its defence rhetoric with real money and a detailed industrial plan. Turning that promise into usable military mass will hinge on two levers: first, credible joint orders that give factories the confidence to expand; second, national budgets that can keep pace with a world that is, regrettably, arming faster than at any other point this century.
The next six months—when governments must file their SAFE project lists—will show if the EU can convert collective resolve into collective capacity before the spending gap yawns even wider.
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