The European Union has announced its first contribution of €40 million to a specialized European defense fund aimed at strengthening its military capabilities. The funding will be provided by the European Investment Fund (EIF), which supports small and medium-sized enterprises, as part of an initiative implemented by Keen Venture Partners with a target volume of €125 million.
This is reported by Finway
This year, the European Investment Bank (EIB), which is part of the EIF, plans to increase its investments in defense projects by 100%. Keen Venture Partners will begin the first phase of fundraising in the third quarter of 2025, which will support between 20 and 25 startups.
Establishment of the SAFE credit mechanism
EU member states have also agreed to establish a credit mechanism called Security Action for Europe (SAFE) with a funding volume of €150 billion. According to Ukrainian Prime Minister Denys Shmyhal, our country has received official partner country status, enhancing its participation in European defense procurement opportunities. He emphasized the importance of this decision for strengthening the security not only of Ukraine but also of EU countries and the entire continent.
“An extremely important decision for strengthening the security of EU countries, Ukraine, and the entire continent,” he stressed.
Stimulating investment in the defense industry
The SAFE initiative aims to encourage investment in the European Union’s defense complex, which is an important step in strengthening European defense capability.