EU Planning 5 Billion Euro Defense Fund in Wake of Trump and Brexit

The European Union (EU) has unveiled its biggest defense funding and research plan in more than a decade in a bid to reverse billions in cuts and in turn to send a message to US President-elect Donald Trump that it wants to pay for its own security.

The main proposal is an investment fund for defense that would allow EU governments that pay in to also borrow from it. In a move to revitalize defense cooperation, the European Commission has proposed a 5 billion euro (US $5.3 billion) fund in order to let governments club together to purchase new helicopters and planes to lower costs. EU officials have disclosed that another plan is to let the EU’s common budget and its development bank invest in military research. This move would open the door to new drones, cyber warfare systems and other hi-tech gear. Some EU officials have conceded that bigger EU countries, like Germany which has one of the world’s largest defense industries, stand to gain most from the Commission’s proposals with smaller nations being at a greater risk of losing business.

European Commission Vice President Jyri Katainen has disclosed “this is not about an EU army, this is not about spending on the military instead of social security…We face multiplying threats and we must act,” stressing that all assets developed would belong to national governments.

Currently no details on how the bloc plans to persuade member states to move away from the current system, where many pursue their own defense projects favouring local manufactures and duplicating efforts, have been released. Accoridng to European Commission data, the bloc has nineteen types of armoured infantry fighting vehicle, compared with one in the United States. Wasted funds amount to 25 billion euros a year.