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EU Strengthens Defense Autonomy by Prioritizing European-Made Equipment Over US Purchases.
The European Union has announced a major initiative to reduce its security dependence on the United States by prioritizing the procurement of European military equipment and accelerating defense investments. This strategy, known as “Readiness 2030,” is accompanied by the European Defence White Paper and the ReArm Europe plan, an ambitious program designed to mobilize substantial financial resources to enhance the continent’s military capabilities.
Complementing this initiative, the ReArm Europe plan – Readiness 2030 aims to equip Europe with new financial tools to expedite defense investments (Picture source: Bundeswehr)
This announcement comes at a critical time, as NATO intelligence estimates that Russia could be capable of launching a new offensive in Europe within three to five years. Meanwhile, the Trump administration has recently reaffirmed that U.S. security priorities are now focused on its own borders and the Indo-Pacific region, prompting European nations to take greater responsibility for their own defense and that of Ukraine.
Against this backdrop, the European Commission and the High Representative for Foreign Affairs have unveiled the European Defence White Paper – Readiness 2030, which sets out a strategic framework for addressing capability gaps and strengthening the European defense industrial base. It provides concrete measures to encourage EU member states to invest in defense, improve military procurement coordination, and ensure long-term readiness in the European defense industry. Key priorities include closing critical capability gaps, pooling demand, increasing joint acquisitions, strengthening integration with the Ukrainian defense industry, and simplifying regulations to develop a unified European defense market. The transformation of the military sector will also be accelerated through emerging technologies such as artificial intelligence and quantum computing.
Complementing this initiative, the ReArm Europe plan – Readiness 2030 aims to equip Europe with new financial tools to expedite defense investments. The program includes budgetary flexibility measures that allow EU member states to increase military spending while remaining within the bloc’s fiscal rules. A “national escape clause” under the Stability and Growth Pact will enable member states to raise their defense spending by up to 1.5% of GDP annually over a four-year period.
As part of this plan, a new financial instrument called “Security Action for Europe” (SAFE) will be established to raise up to €150 billion on capital markets. These funds will be available to EU member states as long-term loans under favorable conditions, backed by the EU budget. The objective is to accelerate joint procurements of military equipment from European defense industries, ensuring interoperability, investment predictability, and cost reduction. Ukraine, as well as certain countries from the European Free Trade Association (EFTA) and the European Economic Area (EEA), will also have the opportunity to participate in these joint procurement initiatives.
In parallel, the ReArm Europe plan will leverage the European Investment Bank Group (EIB) to expand its lending scope to defense and security projects. Additionally, the European Commission aims to accelerate the development of a European Savings and Investment Union to encourage private sector participation in funding strategic defense projects, complementing public investments.
European Commission President Ursula von der Leyen emphasized the need for a fundamental shift in defense policy. According to her, the era of the “peace dividend” is over, and Europe must proactively invest in its military capabilities to ensure its security. She highlighted that prioritizing European military procurement would strengthen the European defense industry, foster innovation, and create a structured, unified market for defense equipment.
This new approach is part of a broader effort to enhance Europe’s strategic autonomy. Currently, approximately two-thirds of defense contracts placed by EU member states are awarded to U.S. suppliers. Under the new financing and loan programs, EU states will be required to source at least 65% of their defense equipment from suppliers within the EU, Norway, or Ukraine. U.S., U.K., and Turkish defense companies will only have access to EU funds if their respective governments sign security agreements with the bloc.
While France strongly advocates for prioritizing European industry, some EU member states, including Poland and the Netherlands, continue to favor U.S. defense acquisitions. The EU is also encouraging member states to strengthen security partnerships with strategic allies such as the United Kingdom, Canada, Norway, Australia, Japan, South Korea, and India.
European Defense Commissioner Andrius Kubilius has stressed the urgency of collective action. He underscored that the 450 million citizens of the European Union should not have to rely solely on the 340 million Americans for their security. By consolidating military capabilities and fostering a stronger defense industry, the EU aims to secure its strategic independence while maintaining its support for Ukraine in the face of ongoing conflict with Russia.