Brussels has loosened the conditions for using the remaining €335 billion in the pandemic recovery fund
The European Commission will now allow member states to redirect pandemic recovery funds they have struggled to claim for use in bloc-wide security and defense initiatives – with significantly less oversight and fewer bureaucratic hurdles.
The EU 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 the funds, member states must prove their projects meet specific benchmarks.
Roughly half of the fund remains unspent, with the Commission’s communique on Wednesday warning that the deadline to “provide evidence” is looming in September 2026.
In order to “easily secure” their share of the remaining funds before time runs out, countries can now instead channel RRF-backed money into various EU “defense” projects, such as the European Defence Industry Programme (EDIP) or satellite communications initiatives, Politico reported on Wednesday.
“These alternatives could help the Recovery Facility to deliver additional important benefits from common European priorities, including in the areas of security and defense,” EU Trade Commissioner Valdis Dombrovskis said.
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.”
Kiev is specifically listed as one of the main beneficiaries of EDIP, an initiative designed to subsidize the bloc’s defense industry and enhance “joint procurement with and for Ukraine,” according to an EC factsheet. Originally 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 Kiev 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.
In March, European Commission President Ursula von der Leyen presented a plan to mobilize up to €800 billion ($875 billion) in debt and tax incentives for the military-industrial complex to “rearm” the bloc against the perceived “Russian threat.” Last month, the Council of the European Union endorsed a €150 billion ($170 billion) militarization plan, dubbed SAFE (Security Action for Europe), to raise funds for military purposes without direct approval from the European Parliament.
Russia has repeatedly dismissed claims it plans to attack Western Europe as “nonsense,” accusing the West of using scare tactics to justify diverting public funds toward military spending. Moscow has warned that foreign involvement and arms deliveries only obstruct any peace efforts and embolden Kiev. The Kremlin has also criticized the EU’s militarization drive, warning that it risks triggering a broader conflict in Europe.
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