European Union member states are on the verge of finalizing a €1.5 billion ($1.6 billion) defense fund aimed at strengthening the bloc’s military industry, Bloomberg reports.
Sources familiar with the negotiations indicate an agreement on the European Defence Investment Program (EDIP) is expected by year’s end.
A key element of the impending agreement allows for the purchase of military equipment containing up to 35% of components sourced from outside the EU.
The EDIP will focus on funding “flagship projects of common interest,” prioritizing areas such as air and missile defense. The EU aims to shift away from its previous reliance on emergency purchases of off-the-shelf equipment from third countries, instead prioritizing collaborative investments and joint procurement initiatives.
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