EU rearmament fund excludes US, UK, Turkey defense firms

The European Union plans to exclude arms companies from the US, UK, and Turkey from a new €150 billion defense fund unless these countries sign security agreements with Brussels. A proposal from the European Commission aims to limit funding for weapons purchases to EU defense firms and companies from countries with defense pacts. Advanced weapons systems that are controlled by third countries, like the US Patriot missile system, will also be excluded. This decision reflects concerns from France and other EU nations about relying on US defense support. They believe a "Buy European" approach will strengthen the EU's military independence. Kaja Kallas, the EU’s chief diplomat, emphasized the need for Europe to develop its own defense industry without foreign restrictions. She pointed to the ongoing war in Ukraine as a reason for this shift. The proposal requires that at least 65% of spending on products come from the EU, Norway, and Ukraine, with some allowance for third countries with security agreements. The UK has sought to join this initiative and is engaged in talks with the EU about a defense and security partnership. However, negotiations have become complicated by broader issues such as fishing rights and immigration. With the exclusion of the UK and Turkey, European defense companies may face challenges due to their connections with firms in those countries. British officials expressed a desire to work collaboratively for European security and warned that this policy could lead to fragmentation in European defense markets. The proposal faces potential resistance from other EU nations, particularly those with strong ties to non-EU defense producers. It still requires approval from a majority of EU member states. Under the new rules, some funds can be spent on products from countries like Norway, South Korea, and Ukraine.