European Defence Fund, which was established in 2017 with the aim to coordinate and increase national investment in defence research and to improve interoperability between national forces. European Union policymakers have backed plans that will see the organization financially support the European defense industry in an effort to promote new product development.
The EU subsidies are intended to encourage companies from different countries to cooperate in the development phase of new and upgraded defense products and technologies in the EU.
Under the plan, some €500 million (U.S. $615 million) will be allocated in 2019 and 2020 for the new program, which is aimed at cross-EU country development of EU defense capabilities. This could, for example, include drones for military use or a European cybersecurity mechanism.
The amount could increase to €1 billion per year from 2021 and possibly boost pan-EU cooperation on large weapons systems, such as aircraft, battle tanks and naval ships.
The move was welcomed by senior French Member of the European Parliament Françoise Grossetête, chairwoman of the Working Group Economy and Environment, who, speaking from Brussels, said the program will “strengthen our capability to defend our countries and citizens, improve our strategic autonomy, foster innovation, and create jobs in Europe.”
“This is a ground-breaking way of thinking in the development of our defense capabilities and an important step towards a European defense union,” she said.
“We need to have fewer weapons systems in order to maximize our defense collaboration in the field and get the most out of the public money we spend on defense, and this is a way to achieve it,” she added. “The all-European defense technological and industrial base — in particular our [small and medium-sized enterprises] and mid-caps — will benefit from this program. Excellence and innovation will be the main drivers.”
EU governments must combine their defense spending on research, development, acquisition, training and maintenance in a comprehensive way.
The European Defence Fund, which was established in 2017 with the aim to coordinate and increase national investment in defence research and to improve interoperability between national forces, will grant OCEAN2020 with €35 million (USD43 million).
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