In a total defense European “package” which, it seems, reaches the threshold of 1 trillion. euro leads her proposal Commission For the new community budget For the period 2028 – 2034.
And this is why Next to the EUR 800 billion already provided by the EU from March 2025 as part of its Rearm – EU program by 2030, The Commission came last Wednesday (July 16, 2025) to propose Community Expenditure in the context of the Community budget for 2028 -2034 -through the construction of a “European Defense Union” For defense of 131 billion euros.
In fact, however, taking into account other “accounts” of the Community budget- in addition to the “European Defense Union”– The new Community spending appears to be able to reach at least € 149 billion or 7% of all Community spending for the next programming period (2028 – 2034).
So Rearm EU costs (EUR 800 billion for 2025 – 2030) in conjunction with those of the Commission’s proposal (at least € 149 billion for 2028 – 2034) lead to a European defense package that will probably not only reach 1 trillion. euro, but will include the period 2025 – 2034…
Specifically, the Commission’s proposal states that:
- Connecting Europe Facility will support investment in military mobility, along with political infrastructure, with nearly 18 billion euros, 10 times higher than the current budget.
- The European Peace Facility (EPF) will remain an out -of -budget for funding of costs arising from operations with military and defense implications.
- National and regional partnership plans will also include reforms and investments that support, inter alia, defense industry, internal security, cyber security, as well as border management and migration.
More specifically, the Commission Staff Working Document, which accompanies the Commission’s proposal for the new Community budget, says for each of the above sources of funding for the defense:
- As global security threats are increasing amid growing geopolitical tensions, defense support is one of the priorities of this proposal for the Community budget.
Strengthening the defense in the EU requires effort both in terms of demand (strengthening the defense and military capabilities of the Member States) and on the part of the supply (competitiveness of the EU defense industry).
On the demand side, the Rearm Europe plan provides a boost to the defense spending of Member States through
- activation of the national stability and growth escape clause and growth and
- Loans supported by the EU budget with the average of security for Europe (SAFE).
The next context of the Community budget can give a significant boost on the part of the offer, enhancing the competitiveness of the EU’s defense industry, while ensuring strategic autonomy, in particular through the European Competitiveness Fund (ECF) and national and regional corporate plans.
- The Union’s support for the defense industry under the next EU budget will come mainly from the European Competitiveness Fund (ECF). Funding for defense in the Community budget 2021-2027 has increased significantly compared to the past, but remained very limited (€ 11.4 billion for the total Community budget). In addition, funding remained fragmented. The ECF will provide support to strategic defense technologies throughout the investment route, from research to growth, construction and development, in its defense and space window. The ECF will provide a combination of different forms of support on the part of supply and demand (grants, guarantees, financial means, etc.), also contributing to the alleviation of the risk for common defense projects and defensive innovation, thereby facilitating access to private funding for defense industry. In this respect, the ECF could also support defense projects of common European interest.
- Member States will also be able to support defense -related projects through their national and regional partnership plans. Projects should, for example, contribute to one of the following goals:
- the competitiveness of European defense and technological industrial base
- Cooperative projects concerning many Member States (in synergy with
What has been done under the ECF) - or investment in dual-use infrastructure (political-military), especially in sections of trans-European transport networks (within national borders.
Member States will also be able to fund important projects of common European interest (including those in the field of defense) through their plans.
- Support support and demand for defense will be completed by investment in infrastructure for military mobility within the mechanism by connecting Europe (CEF). to support the transportation of troops and equipment through rail, roads, airports, sea ports, internal floating roads and multimodal terminals. In contrast to the Community budget of 2021-2027, where military mobility was placed in a separate budget area with limited reorganization and reinforcement capabilities, simplified planning of the budget 2028-2034 will increase the rearrangement capabilities in all areas of the European Competitiveness Fund.
- Finally, the European Peace Fund (EPF) will remain as a means of budget, in accordance with the requirements of the conditions. The EPF has shown its value in the current period in many areas, but in particular Ukraine’s support against the Russian aggressive war. The initial budget of € 5.7 billion for the period 2021-2027 in March 2021 gradually increased in the current € 17 billion funds.