Published by Global Banking & Finance Review®
Posted on June 25, 2025
1 min readLast updated: January 23, 2026
Add as preferred source on GoogleThe EU Commission plans to allocate part of a new fund to defence and space, addressing underinvestment. This proposal is part of the 2028-2034 budget.
BRUSSELS (Reuters) -The European Commission will propose dedicating part of a new European Competitiveness Fund to resilience, defence and space, the EU executive's leadership said on Wednesday.
The Commission is expected to put forward a plan for a competitiveness fund to invest in strategic sectors and innovation as part of an upcoming proposal for the bloc's 2028-2034 budget.
"The gap to fill, after years of underinvestment and under attention to defence, is large," European Commission President Ursula von der Leyen and EU foreign policy chief Kaja Kallas wrote in a letter to European leaders on Wednesday.
"This is why the Commission’s proposal for the next Multiannual Financial Framework will also address the need for substantial funding for defence in the years to come through a dedicated Resilience, Defence and Space window of the European Competitiveness Fund," they wrote.
EU leaders are expected to discuss defence priorities during a summit in Brussels on Thursday.
The discussion will take place a day after a NATO summit in The Hague, where alliance members committed to boosting defence spending to 5% of Gross Domestic Product.
(Reporting by Lili Bayer)
The new fund aims to invest in resilience, defence, and space as part of the EU's strategy for the 2028-2034 budget.
The proposal is being led by European Commission President Ursula von der Leyen and EU foreign policy chief Kaja Kallas.
EU leaders are expected to discuss defence priorities during a summit in Brussels on Thursday.
NATO members committed to boosting defence spending to 5% of Gross Domestic Product during a summit in The Hague.
The Commission's proposal addresses the need for substantial funding for defence in the coming years through a dedicated Resilience fund.
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