The EU has launched a “Big Bang” package of measures to help member states ramp up defence spending and joint procurement.

On 19 March 2025, the European Commission unveiled a comprehensive defence support package. First, it proposed an emergency €150 billion loan facility called “Security Action for Europe” (SAFE) to finance joint defence purchases by member states. This facility would essentially enable the EU to lend money or underwrite loans so countries can quickly procure weapons (like air defence systems or ammo) together, rather than individually. Second, the Commission is encouraging use of the EU’s fiscal escape clause to exclude defence spending from deficit calculations up to a limit – specifically, allowing a deviation of up to 1.5% of GDP for defence spending from 2025–2029 without breaching EU budget rules. This is in line with a proposal previously signaled (and particularly benefits high-debt countries like Italy to spend more on defence without EU penalty). Third, the package includes a plan for a European Defence White Paper and a five-year roadmap to identify and fill critical capability gaps by 2030. Collectively, these measures are unprecedented in EU history – they treat defence as a shared priority, akin to how the EU might handle an economic crisis. The €150 billion SAFE fund, for example, represents EU-level financing for military needs, something unthinkable a few years ago. Brussels’ message is that lack of money should not hinder rearmament: if national budgets are tight, EU loans or flexible deficits can bridge the gap. For Europe’s defence industry, this is highly supportive: easier financing for governments likely means more and faster orders (the SAFE facility could accelerate big-ticket projects like air defence shields or fighter jets by pooling demand and funding). Politically, it reflects a “renewed push to coordinate spending” and reduce reliance on non-EU suppliers. The next step is implementation – EU states and the European Parliament need to approve these drafts. If they do, Europe will effectively have a temporary “war chest” to finance defense, plus looser purse strings at home, which together could significantly boost the sector in coming years.