European Union ministers on Tuesday approved the creation of a €150 billion (approximately $170.7 billion) arms fund, aimed at strengthening the bloc’s defense capabilities amid growing fears of potential Russian aggression in the coming years and uncertainty over long-term U.S. security commitments to Europe.

The fund marks a significant shift in the EU’s defense policy, reflecting a broader push for greater strategic autonomy in response to evolving geopolitical threats and the ongoing war in Ukraine.

While full details on the fund’s financing mechanisms and member state contributions have yet to be disclosed, diplomatic sources say the initiative seeks to enhance Europe’s ability to respond swiftly to security challenges and to boost the continent’s defense industry through coordinated arms procurement.