"Today the Commission is launching a European Defence Fund to help Member States spend taxpayer money more efficiently, reduce duplications in spending, and get better value for money. The Fund will coordinate, supplement and amplify national investments in defence research, in the development of prototypes and in the acquisition of defence equipment and technology," European Commission announced.
The Fund will be financed from EU budget and financial contributions from its member states.
It is expected that the annual budget of the fund should amount to 5.5 billion euro after 2020. The funds will be directed at realization of projects in defense research sphere, military procurement and development of EU defense forces.
As it was stressed by the High Representative of the European Union for Foreign Affairs and Security Policy, Federica Mogherini, new defense initiatives do not aim to replace or duplicate NATO, but are directed at complementing the activity of organizations in the sphere of defense and security.