The 27 member states of the European Union on May 19, 2025, gave preliminary approval to the creation of a 150 billion euro (about 169 billion US dollars) defense fund intended to finance the production of ammunition, drones, missile defense systems (MDS) and the protection of critical infrastructure, Bloomberg reported, citing informed sources. The initiative, proposed by the European Commission in March 2025, was called ReArm Europe and is seen as a strategic response to the reduction of military support from the United States, as well as the increasing threats from Russia.

The fund, which is expected to be finalized at a meeting of EU foreign ministers on May 20, will be the largest defense program in the EU’s history. According to European Commission President Ursula von der Leyen, it is a “once-in-a-generation moment.” The funds will be provided in the form of soft loans available not only to EU countries but also to some non-EU countries, including the United Kingdom and Ukraine. The decision underlines the EU’s desire to strengthen its defense autonomy amid geopolitical instability.

The main areas of funding include increasing the production of artillery shells, developing unmanned systems technology such as FPV drones, and upgrading air and missile defense systems, including similar to the American Patriot system. Some of the funds will go to protecting key infrastructure such as energy networks and ports, which are increasingly becoming targets for attacks, including cyber threats. According to Reuters, the program complements other EU measures that give countries fiscal flexibility to increase defense spending by up to 800 billion euros in the coming years.