The EU has approved 300 million euros ($316 million) for the joint procurement of five defense projects by member states.
The first-ever EU funding for joint defense procurement will be for five cross-border projects, with each receiving 60 million euros ($63. 27 million).
Projects include Mistral and IRIS-T SLM air defense systems, the Common Armoured Vehicle System (CAVS), and 155mm ammunition.
The initiative supports more coordinated, efficient, and affordable defense procurement for member states’ armed forces through economies of scale.
“This is the first time we use the EU budget to support Member States in commonly procuring defense products,” Executive Vice President Margrethe Vestager said.
“This will provide better value for money for national defense budgets, improve the interoperability of European armed forces, strengthen our industry and make Europe better prepared to face defense threats. Importantly, the selected projects will also increase our support to Ukraine, with additional defense equipment.”
Projects
A total of nine countries are procuring the Mistral very short-range air defense system, including France, Spain, Hungary, and Romania, while the IRIS-T SLM medium-range air defense system is being bought by six member states, including Germany and Bulgaria.
Additionally, the CAVS is being bought by four member states, namely Finland, Latvia, Sweden, and Germany.
The CAVS program was jointly established by Finland, Estonia, and Latvia in 2020 to address the need for a common, protected, amphibious troop transport.
Finally, the procurement of 155mm ammunition will be under the Collaborative Procurement of Ammunition and High Explosives.
