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The EU is considering redirecting €400 billion in regional aid to the defense industry - Euractiv

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EU countries are considering directing nearly 400 billion euros from regional aid to the defense industry, including bomb shelters and military-civilian technologies, according to a document seen by Euractiv, UNN writes.

Details

The positions reflected in the internal document reportedly show the willingness of several EU countries to use the so-called "cohesion funds" intended for social and regional development for their defense needs.

EU's €800 billion defense plan hit with tepid response - Euractiv06.05.2025, 11:49 • [views_11774]

The attempt was made just weeks before the EU executive is due to present the bloc's next seven-year budget to its member states.

Brussels is using a mid-term review of the "cohesion funds" regulation, usually a simple "tick-the-box" step, to free up money for Europe's security architecture. This is one of many ideas being discussed to channel more money into the defense industry, the publication writes.

The document, as indicated, shows how EU countries are interested in blurring the lines between the civilian and military worlds so that money can be spent interchangeably on either project. The same pattern is observed in the NATO military alliance.

What is defense, really?

The European Commission's initial proposal focuses on modernizing civilian transport infrastructure with military potential, such as bridges and roads strong and large enough to withstand the weight of tanks or serve as runways for landing F-35 fighter jets.

But the bloc's member states, as noted, are asking for even greater scale. Latvia wants "cohesion funds" to cover housing for soldiers and bomb shelters, while Greece wants fully military infrastructure, not just dual-use facilities, to be included in the scheme. This would open the door to funding military barracks.

Slovakia, which is now building hospitals, including for the military, is asking that such facilities - useful in both peacetime and wartime - be eligible for funding from "cohesion funds," the publication writes.

Similarly, France, as indicated, wants the definition of suitable infrastructure to include "ports, airports, submarine cables and digital networks." With overseas territories in the Indian and Pacific Oceans, it also wants the outermost territories to be eligible for funding.

The European Commission has also reportedly proposed using regional aid funds to increase production capacity for arms manufacturers, including ammunition, missiles, air defense and critical infrastructure protection. However, combat aircraft will be excluded.

In this case, the Czech Republic also proposes to channel money to dual-use companies whose products are also used in the civilian world, especially in technology development. It also wants the money to go through its entire value chain, the publication notes.

EU countries have yet to discuss, amend and approve the plan. The European Parliament is on track to amend the text through an emergency procedure, which will speed up the legislative process by several months, the publication writes.

EU is arguing over a €150 billion defense procurement program - Euractiv01.05.2025, 10:19 • [views_8944]

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