The European Union has announced a significant new defense spending initiative, explicitly excluding American weapon manufacturers from its plans, as presented on Wednesday.

This strategy aims to establish a robust military-industrial complex focused on deterring Russia and decreasing dependence on the United States.

Additionally, the United Kingdom has been momentarily sidelined from these proposals.

European Commission President Ursula von der Leyen emphasized the need for enhanced procurement of European-made defense products, stating, "We must buy more European, as it strengthens our defense and industrial base," during her announcement of the program, titled “Readiness 2030.”

In a bid to fortify ties with allies, the program includes countries such as South Korea and Japan, along with the European Free Trade Association (EFTA).

The EU anticipates that its defense expenditures could reach up to €800 billion in total.

European Commissioner for Defense Andrius Kubilius stated that while Russia remains a primary threat, the EU must also consider global geopolitical dynamics and the strategic focus of the United States.

Historically, around two-thirds of defense procurements within the EU have been directed toward American companies.

The European Commission introduced its long-term defense policy proposal, called the “White Paper,” along with various legislative initiatives to facilitate military spending and create a more integrated defense market across member states.

Kaja Kallas, the EU’s Foreign Minister, noted, "We are not doing this to go to war, but to prepare for the worst and defend peace in Europe." However, America's previous actions under former President Donald Trump, such as the abrupt suspension of arms deliveries to Ukraine, have prompted European nations to seek faster responses to potential threats.

The most concrete element of the new initiative includes an offer from the European Commission to lend up to €150 billion to member states for defense spending under the so-called Safe instrument.

While these loans will be available exclusively to EU countries, friendly non-member states may also participate in common arms procurement.

Countries such as Ukraine, Norway, Switzerland, Iceland, and Liechtenstein from the EFTA, alongside candidate and potential candidate nations, as well as countries with whom the EU has established Security and Defense Partnerships, will have access to this joint procurement initiative.

As of January, the EU maintained six defense and security partnerships, including agreements with Norway, Moldova, South Korea, Japan, Albania, and North Macedonia.

Turkey and Serbia, both candidates for EU membership, could also be integrated into this framework.

The exclusion of the US and the UK from this plan marks a strategic shift, although the UK's status might be subject to change.

Kallas expressed hope for advancements in defense cooperation with the UK by the upcoming summit in May.

Canada has also expressed a clear desire to strengthen its security relations with the EU, while the European Commission has proposed increased defense collaboration with Australia, New Zealand, and India.

The initiative aims to favor European companies, a move designed to satisfy France, one of Europe’s leading arms manufacturers.

To limit outside participation further, the agreement prohibits foreign governments from accessing confidential information.

Moreover, it stipulates that at least 65% of the components eligible for financing must be of European origin, a requirement extended to include Ukraine and Norway as well.

The planned fund will exclude defense systems for which non-EU countries hold design or control rights.

This exclusion encompasses most joint production projects of American military equipment within the EU.

Loans will finance joint projects by two or more member states, aiming to foster a cohesive defense industry across Europe.

An EU official stated, "We are removing fragmentation by encouraging member states to join forces and procure the same weaponry at better prices.”

To immediately promote arms purchasing, the European Commission will allow EU nations to place individual orders within the first twelve months of the program.

The proposals also enable member states to bypass strict budgetary constraints, allowing them to exceed the EU public expenditure limit by as much as 1.5% of GDP over four years.

The deadline for loan applications is set for June 30, 2027, with disbursements anticipated until the end of 2030, although these loans must be repaid to the European Commission within 45 years.