European Peace Facility: Council agrees on second top-up of the overall financial ceiling by €3.5 billion
The Council today adopted a decision increasing the overall financial ceiling of the European Peace Facility (EPF) by €3.5 billion, building on an earlier agreement from 20 March 2023.
This decision is intended to ensure the EPF financial sustainability and predictability in the longer term, and preserve its global geographical scope and the EU‘s ability to prevent and swiftly respond to crises and conflicts.
“Today’s decision will again ensure that we have the funding to continue delivering concrete military support to our partners’ armed forces. This is already the second increase of the European Peace Facility funding since its creation in 2021. In less than two years, the Facility has proven its worth. It has completely changed the way we support our partners on defence. It makes the EU and its partners stronger.”
– Josep Borrell, EU High Representative for Foreign Affairs and Security Policy
With today’s top-up, the overall financial ceiling now totals more than €12 billion (in current prices).
This decision sends a clear political signal of the EU’s enduring commitment to military support for Ukraine and other partners alike.
Infographic – European Peace Facility
Background and next steps
The European Peace Facility was established in March 2021 to finance all common foreign and security policy (CFSP) actions relating to military and defence matters, with the aim of preventing conflict, preserving peace and strengthening international security and stability. In particular, the European Peace Facility allows the EU to finance actions designed to strengthen the capacities of non-EU countries and regional and international organisations in relation to military and defence matters.
The EPF is an off-budget instrument. It started with an overall financial ceiling of €5.5 billion (in current prices) for the period 2021-2027, which was increased with a first top-up of €2 billion to almost €8 billion (in current prices) on 13 March 2023. Contributions by member states are determined based on a gross national income (GNI) distribution key.
Thanks to the EPF, the EU has been supporting the Ukrainian Armed Forces through seven successive support packages so far, as well as many other countries such as: Mozambique, Georgia, Moldova, Bosnia and Herzegovina, Somalia, Niger, Mauritania, Lebanon and Jordan. The military components of African-led Peace Support Operations and multinational units such as the Balkan Medical Task Force, have also been supported thought the EPF.
As a result, 92% of the overall financial ceiling for 2021-2027 has already been committed in 2023, which made a further increase necessary.