The EU has limited access for US, UK, and Turkey companies to a €150B rearmament fund aimed at supporting the European defense industry.

Companies based in the US, UK, and Turkey will not be allowed to participate in the €150B EU defense fund proposed by the European Commission unless their respective countries sign defense and security agreements with Brussels.

The goal of this new approach is to enhance the EU’s defense industry and lessen reliance on foreign suppliers. This specifically applies to advanced weapon systems where a third country can restrict the use of certain components or control their application. One such example is the American Patriot air defense system from RTX, among other US weapons systems.

The proposal still requires approval from most EU countries. If successful, member states will allocate at least 65% of their spending towards products from EU companies, Norway, and Ukraine. The remainder may be directed toward goods from countries that have signed security agreements with the EU.

Excluding the UK and Turkey could pose challenges for major European defense companies that collaborate with those countries. However, if Washington, London, or Ankara wish to join, they will need to negotiate an agreement with the EU.