The European Union wants its member states to prioritize European-made military equipment under a new loan program aimed at strengthening the continent’s defense industry.
European Commission President Ursula von der Leyen made it clear that EU countries should avoid buying from American suppliers when using the proposed funding.
At last week’s summit, the 27 EU leaders discussed a plan for a €150 billion ($163 billion) loan program to finance military purchases. The funds would help countries acquire air defense systems, drones, transport aircraft, and cybersecurity tools, ensuring Europe becomes more self-sufficient in defense.
Von der Leyen emphasized that these loans should support European defense companies, helping to expand the industry and create long-term stability. She also urged countries to sign multi-year contracts to give manufacturers the predictability they need. Another key goal is for EU nations to make joint purchases in groups, which she said has proven to be highly effective.
Currently, European NATO members rely heavily on American defense suppliers, with around two-thirds of their orders going to U.S. companies. However, growing uncertainty over U.S. security commitments, particularly under the Trump administration, is pushing European leaders to reduce dependence on American weapons and invest more in their own capabilities.
With ongoing conflicts in Ukraine and rising global tensions, the EU is accelerating efforts to strengthen its military readiness. The new loan initiative is expected to be a major step toward making Europe less reliant on external defense suppliers while boosting its own defense industry.