Investing.com — Finland, the Netherlands, and the United Kingdom announced Tuesday they are exploring a new mechanism for defence financing and procurement, aiming to launch the initiative by 2027.
The three NATO allies said the mechanism would seek to aggregate demand, drive joint procurement, accelerate defence investment, and increase the availability of critical capabilities such as munitions as they expand shared defence and security commitments.
The announcement comes as increased threats from hostile actors, including Russian aggression in Ukraine, are causing global instability and disrupting the rules-based international order, according to the joint statement.
UK Chancellor of the Exchequer Rachel Reeves said the government will work with allies to ensure security and economic stability. “Now, more than ever, we must deepen cooperation with our allies. It’s in our long-term interests to strengthen our defence industries, make it easier for our armed forces to work together, and make sure taxpayers get value for money,” Reeves said.
The mechanism is designed to work with partners and existing international institutions while complementing NATO and EU initiatives. The countries said it should strive to strengthen collective deterrence, expand defence industrial capacity, and increase defence capability through joint procurement.
Dutch Finance Minister Eelco Heinen said the mechanism offers a new way of defence cooperation with European partners and is open to like-minded Western partners, both inside and outside the EU. “By joining forces, we get more security with the same resources and we strengthen our alliances as well,” Heinen said.
Finnish Minister of Defence Antti Häkkänen said Finland’s participation from the beginning gives the country the opportunity to influence what such a mechanism could look like.