Turkish soldiers take part in Exercise Dynamic Mariner 25 military drill training, which involves naval forces from several NATO members, at Retin beach, in the Atlantic Ocean, in Barbate, Spain, March 28, 2025. (Photo:REUTERS)

The approval, by ministers from EU countries meeting in Brussels, was the final legal step in setting up the Security Action for Europe (SAFE) scheme, using joint EU borrowing to give loans to European countries for joint defense projects.

The measure was backed by 26 of the EU's 27 member countries, with Hungary abstaining, diplomats said.

The EU initiative seeks to break down national barriers by financing joint projects between member countries. EU countries have already increased defense spending by more than 30% in the past three years.

For a project to qualify for SAFE funding, 65% of its value must come from companies based in the EU, the broader European Economic Area, or Ukraine.