The European Union Commission is set to allow member states to redirect pandemic recovery funds they have struggled to claim for use in bloc-wide security and defence procurement with fewer diplomatic hurdles.
The Commission had established the €650 billion ($740 billion) Recovery and Resilience Facility (RRF) in 2021 to support green energy and growth-oriented projects in the wake of the COVID-19 pandemic. However, to receive those funds, member states must prove that the initiated projects adhere to specific benchmarks.
Roughly half the amount remains unspent and has lapsed, with the commission’s communiqué on Wednesday warning that the deadline to “provide evidence” is looming in September 2026. To “easily secure” their share of the remaining funds before time runs out, countries can now instead channel RRF-backed money into various EU “defence” projects, such as the European Defence Industry Programme (EDIP) or satellite communications initiatives, reports citing sources said.
“These alternatives could help the Recovery Facility to deliver additional important benefits from common European priorities, including in the areas of security and defence,” EU Trade Commissioner Valdis Dombrovskis said. Meanwhile, in a sharp criticism regarding the funnelling of funds to Ukraine, the Hungarian Prime Minister earlier last week said that Ukraine would suck up every Euro and is snatching the future by snatching funds meant for the development of the EU."
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The Commission’s memo claimed that “specific projects would subsequently be selected and supported under EDIP, for the benefit of the Member State concerned, with implementation occurring over a longer time horizon.”
Kyiv, which has been in a constant war with Russia since 2022, is specifically listed as one of the main beneficiaries of EDIP, an initiative that aims to provide arms supplies to Ukraine at subsidised rates. At first, a €1.5 billion program, EDIP also aims to “use windfall profits from frozen Russian assets to support Ukraine.”
Brussels has spent almost €50 billion supporting Kyiv through various EU programs since the escalation of the Ukraine conflict in 2022, in addition to billions contributed by individual member states, according to data from Germany’s Kiel Institute. Russia has constantly dismissed claims it plans to attack Western Europe as “nonsense,” accusing the West of using scare tactics to justify diverting public funds towards Ukraine’s military. Moscow has warned that foreign involvement and arms deliveries only obstruct any peace efforts and embolden Kyiv.
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