[EN] Towards a Coherent EU Defence Investment Framework : From incentive to investment in collective security

The negotiation of the 2028–2034 Multiannual Financial Framework (MFF) takes place within a radically changing security paradigm for Europe. The return of high-intensity warfare to the continent, triggered by Russia’s aggression against Ukraine, has effectively ended the era of the “peace dividend”.

At the same time, US pressure on Europeans to assume greater responsibility for financing their own defence effort has never been stronger. Over the past two years, this pressure has coincided with a growing risk that the US could stop supporting Ukraine.

Regardless of the outcome of the conflict or of ongoing and future negotiations, Europeans will need to ensure that their armed forces are capable both of contributing to Ukraine’s long-term security and of deterring any renewed or broader Russian ambitions on European territory. This awakening of the urgency for Europe is not entirely new.

The Versailles Summit — and in particular the Versailles Declaration adopted only a month after the outbreak of war in Ukraine in 2022 — provides a striking example.

Since then, European members have maintained continuous commitment and support — both towards Ukraine and towards the effort needed to strengthen European defence.

European institutions have multiplied initiatives to accompany this necessary ramp-up, through mechanisms such as the Act in Support of Ammunition Production (ASAP), European Defence Industry Reinforcement through common Procurement Act (EDIRPA), European Defence Industry Programme (EDIP) or Security Action for Europe (SAFE), which have introduced new instruments such as joint acquisition mechanisms or loans to Member States.

The recent White Paper on defence enshrines the urgency by setting very short deadlines for action (2030). It is in this context that the next MFF must be placed, calling for a significant reassessment of the Union’s defence policy instruments and the financial resources dedicated to them.

This document is a briefing requested by the BUDG Committee.