The European Commission has proposed a €150 billion defence investment plan that will exclude arms manufacturers from the United States, the United Kingdom, and Turkey unless their respective governments sign defence and security agreements with the European Union. The proposal, aimed at strengthening Europe’s defence industry, is seen as a significant victory for France and other proponents of a "Buy European" strategy.

According to the Financial Times, the proposed fund, part of the EU’s broader ReArm Europe initiative, will be available exclusively to EU-based defence companies and firms from countries that have signed specific defence pacts with the bloc. At least 65% of the funding must be spent within the EU, Norway, and Ukraine, while the remaining portion can be allocated to products from third countries with security agreements.

Additionally, the proposal seeks to exclude advanced weapons systems over which third countries hold "design authority," meaning any system that comes with restrictions on its construction, components, or operational use. This directly impacts major US defence products, including the Patriot air and missile defence system manufactured by RTX, as well as other American weapons systems subject to Washington's usage constraints.

This policy shift is driven by concerns over the long-term reliability of the US as a defence partner, particularly in light of Donald Trump's previous actions questioning NATO commitments. EU leaders argue that the war in Ukraine has underscored the need for European militaries to operate independently, without foreign-imposed restrictions on their defence capabilities.

UK defence firms, including BAE Systems and Babcock International, are deeply integrated into European defence supply chains, particularly in Italy and Sweden. The UK has strongly lobbied for inclusion in the programme, but its participation is contingent on negotiating a security agreement with the EU. Talks between London and Brussels have started but have been stalled due to broader disputes, including fishing rights and migration policies.

A British official emphasized the UK’s willingness to collaborate on European defence to prevent market fragmentation, while an industry insider expressed concern over the exclusion, arguing that the EU’s stance—especially France’s—is "transactional" and undermines the vision of a unified European defence strategy.

France has long pushed for prioritizing EU-based defence procurement, but past attempts faced resistance from Germany, Italy, Sweden, and the Netherlands, which maintain strong ties with non-EU defence manufacturers. The current proposal will require approval from a majority of EU member states.