Cliff Notes – EU Defence Fund: A New dawn is upon us, one to rival the US
- Sweden’s Saab CEO Micael Johansson urges EU states to consolidate defence expenditures into a common fund—aiming for €100 billion—to finance flagship military projects
- The move builds on the European Commission’s “Readiness 2030” plan, which includes two funding pillars: relaxed fiscal rules allowing around €650 billion over four years, plus the €150 billion SAFE loan facility
What he wants to do when he starts his job
Johansson, incoming head of the Aerospace, Security, and Defence Industries Association (ASD) as of June 15, noted current funds are dispersed via national governments and tailored to immediate needs
“Maybe it’s wishful thinking,” he said—but pooling national defence budgets could create a common EU fund suitable for flagship projects like air defence, missiles, drones, and electronic-warfare systems
While the EDIP regulation earmarks just €1.5 billion for EU defence industrial support (2025–2027), Johansson believes a €100 billion target would be more realistic, though he admits this is a “big step” and requires strong political will.
Why Now?
EU defence remains heavily fragmented, with national industries, poor interoperability, and slow response to crises
Geopolitical urgency: potential threats from Russia, diminished US support due to a strategic pivot to the US & EU relations, and the need for rapid enhancement in ammunition, drones, air defence, mobility, and electronic warfare within the EU.
Johansson emphasizes that European firms can compete with US counterparts—except in some high-end technologies like integrated missile defence and autonomous drones .
What’s Next?
The European Commission plans to propose more regulatory cuts to streamline defence collaboration next week
Success depends heavily on member states’ political backing to shift from a national defence-first mindset to a collective, strategic European posture.
The US and its eauropean allies are sure to provide opposition to this policiy from within.
Between the Lines
Perspective is important, not every policy is designed to see its course in completion, some are developed and adapted as you go along, and this is one of those policies, The EU needs to ensure it not left vunerable and held to ransom by Trump and future US leaders.
It is why Johansson’s appointment is so poignant, a tough-talking pro-EU with a bold statement. He will take the EU from fragmented national defence budgets to a shared European fund, which will grow past a €100 billion in years to come, to underwrite key military projects and strengthen EU strategic autonomy. A tall order, but reflective of shifting geopolitical challenges and internal momentum toward deeper defence integration.