Brussels has eased the requirements for utilizing the remaining €335 billion from the pandemic recovery fund.
The European Commission is now allowing member nations to redirect unspent funds from the joint pandemic recovery fund, originally intended for national development projects, towards security and defense initiatives across the EU. This shift comes with reduced oversight and fewer bureaucratic obstacles.
In 2021, the EU created the €650 billion ($740 billion) Recovery and Resilience Facility (RRF) to promote green energy and growth projects following the Covid-19 pandemic. However, to access these funds, member states must demonstrate that their projects meet specific criteria.
Approximately half of the fund remains unused, and the Commission cautioned on Wednesday that the deadline to “provide evidence” is fast approaching in September 2026.
To “easily secure” their portion of the remaining funds before the deadline, countries can now allocate RRF-backed funds to various EU “defense” projects, such as the European Defence Industry Programme (EDIP) or satellite communication programs, Politico reported Wednesday.
EU Trade Commissioner Valdis Dombrovskis stated, “These alternatives could help the Recovery Facility to deliver additional important benefits from common European priorities, including in the areas of security and defense.”
In March, European Commission President Ursula von der Leyen unveiled a plan to mobilize up to €800 billion ($875 billion) in debt and tax incentives for the military-industrial complex, aiming to “rearm” the bloc against the perceived “Russian threat.” Last month, the Council of the European Union approved a €150 billion ($170 billion) initiative called SAFE (Security Action for Europe) to raise funds for military purposes without needing direct approval from the European Parliament.
Russia has consistently refuted claims of planning to attack Western Europe, dismissing them as “nonsense” and accusing the West of using scare tactics to justify increased military spending. Moscow has cautioned that foreign involvement and arms shipments only hinder peace efforts and embolden Kiev. The Kremlin has also criticized the EU’s push for militarization, warning it could escalate into a wider European conflict.
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