European Union launches new defense fund

The European Union on Wednesday revealed a new defense fund it said it will be used to build advanced technologies like drones or robotics, following pressure from the United States to increase military spending, The Associated Press reported.

The fund would put $563 million of the EU’s money in 2019 and 2020 toward buying and developing military equipment, and double the amount to $1.13 billion annually after 2020, according to the European Commission.

The money would only be granted if a minimum of three companies from at least two EU member countries take part, but the commission says it expects the money to generate about five times the amount it puts in once contributions are made.

The new fund comes after President Trump last month scolded NATO members for not paying their fair share on defense during a ceremony at the alliance’s new headquarters in Brussels.

{mosads}

“NATO members must finally contribute their fair share and meet their financial obligations,” he said to a crowd that included other European leaders.

Trump has repeatedly called out NATO allies to boost their military budgets, demanding that the countries meet their pledges to spend 2 percent of their gross domestic product on defense.

The commission said the problem is that defense budgets are not well spent and more than $28 billion is lost every year through poor cooperation.

“Two percent of GDP spent separately provides less security than if part of the money is used jointly,” European Commission Vice-President Jyrki Katainen told reporters.

“As important as the amount of money, is how to use it.”