Trio of European states set up new fund to boost defence spending

Financial Times

17 March 2026

The UK, Netherlands, and Finland are establishing a new, independent multilateral mechanism to fund joint defense procurement, aimed at speeding up, acquiring, and producing military equipment. This initiative is designed to bypass traditional bureaucratic constraints of EU defense schemes, allowing for rapid investment in, and development of, key weapons systems and technology.

Key aspects of the tripartite initiative include:

• Alternative Financing: The mechanism provides an alternative to the EU’s €150 billion [Security Action for Europe (SAFE)] program, which the UK recently opted not to join due to high costs.
• Strategic Focus: The collaboration strengthens defense against shared threats by accelerating production and securing long-term defense contracts.
• Scope: The funding is expected to cover high-tech, modern equipment such as drones, digital systems, and other critical munitions to improve deterrence.

 

While Finland is actively involved in this specific new initiative, it has also separately secured funding under the EU’s broader [ReArm Europe programme] to boost national defense capabilities.