European Union finance ministers are preparing to explore an ambitious new initiative that could mark a turning point in the bloc’s approach to collective security.
At the heart of this week's discussion is the proposed European Defence Mechanism (EDM) – a joint fund designed to reshape how Europe procures, funds, and manages its military capabilities, while reducing its long-standing dependence on the United States.
The proposal, which will be discussed at an informal gathering of EU finance ministers in Warsaw this week, lays out a framework for a shared defence fund that would purchase and own military equipment, offering member states access for a usage fee.
Crucially, the EDM would operate outside national budgets, easing concerns among high-debt countries like Italy, Greece, and France about increasing public debt.
Massive defence investment
The concept, though developed by the Bruegel think tank, has been picked up with growing interest by policymakers across Europe.
Commissioned by the Polish presidency of the EU, the plan is gaining traction at a time when European leaders are acutely aware of the need to bolster their own defences in light of Russia’s ongoing aggression and a shifting transatlantic security landscape.
EU ministers are already steering a broader conversation around dramatically increasing defence investment, with plans to raise military spending by up to €800 billion over the next four years.
The EDM would add to this effort, giving ministers a powerful financial tool to support joint procurement and long-term strategic planning.
One of the most notable features of the EDM is its potential inclusivity.
The mechanism could be opened to non-EU countries such as the UK, Ukraine, and Norway, providing a wider platform for collaboration and reinforcing Europe’s broader security architecture.
For ministers, this is not just about pooling resources – but about building a credible and competitive European defence industry with fewer borders and greater cohesion.
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Streamlining military procurement
The current fragmented state of European defence procurement has long been a sticking point. Ministers are increasingly frustrated with inefficiencies caused by the proliferation of military equipment types – such as the seven different models of tanks and nine types of howitzers currently used across the bloc.
A centralised approach through the EDM could streamline operations, lower costs, and improve interoperability between European forces.
EU officials are also keen to focus on acquiring so-called “strategic enablers” – the high-cost, high-impact capabilities that are often provided by the United States.
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These include satellite-based communications, strategic airlift, missile defence systems, and next-generation weaponry.
Under the proposed model, the EDM would act as a planner, funder, and potentially an owner of such equipment, giving Europe a stronger, more self-reliant foundation.
To support fair burden-sharing, the mechanism would also allow subsidised loans for “frontline states” – those bordering Russia or Belarus or investing heavily in their own defence – funded by contributions from all EDM members.
