The only way – in order not to lose them – is the distribution of its unused funds Recovery Fund in favor of strengthening it defense of the EU, according to what emerges from yesterday’s (4.11.25) statements by the Commission Commissioner for Defense and Space, Andrews Koubilius.
According to his speech at the NATO Summit, about 300 billion euros from the Recovery Fund, including 100 billion in grants, remain unused and must be channeled into strengthening defense by the end of 2026 or they will be lost.
In other words, Kubilius clarified that the unallocated 400 billion euros from the Recovery Fund – which was set up during the pandemic to support the recovery of European economies – will either be allocated to defense, or will remain unallocated.
At the same time, he underlined that these funds must be fully utilized to strengthen the common defense, encouraging the member states to keep their commitments and continue the support to Ukraine
“Explosion” in European defense finances
In addition, Kubilius spoke of a “big boom” in European defense finances. As he pointed out, at the NATO Summit last June, the allies agreed to increase defense spending to 3.5% + 1.5% of GDP by 2035, calling this decision historic.
According to him, if EU member states – who are also members of NATO – keep their commitments, then total defense spending will reach €6.8 trillion by 2035. To make this possible, the EU has already taken important and unprecedented decisions, activating SAFE loans and the National Escape Clause, which allow an additional €800 billion in defense spending up to in 2030.
The first SAFE loans are expected to reach national governments early next year, with the possibility of being used to support Ukraine as well, as the Commissioner underlined. At the same time, he expressed the hope that the negotiations for SAFE agreements with the United Kingdom and Canada will soon be completed.
This strategy, as he noted, links the economy with security, as the funds not only strengthen military power, but also European industry, creating new jobs and strengthening Europe’s competitiveness.