"Stop Buying American Weapons"...
EU Enacts Law to Expand Joint Procurement and Production of European Arms
150 Billion Euros in Low-Interest Loans Over Two Years; French and German Defense Firms Expected to Benefit
Macron: "True Sovereignty Means Europe Defending Itself"... EDIRPA Officially Launched
The European Union (EU) will officially implement a large-scale loan support program from May 29 to protect its domestic defense industry and accelerate weapons production. This initiative is part of the 'Buy European' strategy and is interpreted as Europe's version of an industrial promotion measure, responding to the United States' Inflation Reduction Act (IRA).
According to the EU Commission and the European Parliament on May 27 (local time), the 'European Defence Industry Programme (EDIRPA)', totaling 150 billion euros (approximately 234 trillion Korean won) over two years, will take effect from May 29. The core of this program is that EU member states will jointly purchase weapons from European defense companies, instead of importing arms from third countries, and the EU will provide low-interest loans to finance these purchases.
Through this law, the EU aims to encourage joint procurement and expand production capacity in at least eight key defense sectors. The intention is to establish an emergency procurement system, particularly as Europe's weapon stockpiles have been depleted due to the prolonged war in Ukraine. Notably, French President Emmanuel Macron has strongly advocated for defense independence at the EU level, emphasizing before and after the law's implementation that "European sovereignty is only possible when Europe can defend itself."
An EU Commission official stated, "As securing joint defense self-sufficiency is urgent, EDIRPA will be the first step toward restoring supply chains and expanding industrial capacity within Europe," and stressed, "Member states will no longer rely on the United States or other third countries, and will realize the principle of 'buy European and make European.'"
This policy is expected to benefit major EU defense companies in countries such as France and Germany. To promote joint production among member states, the EU will provide incentives to cross-border collaborative companies in the procurement process and will prioritize projects involving participation from at least three countries. As a result, French company Thales, German company Rheinmetall, and Italian company Leonardo are expected to see increased contract opportunities.
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