The new program calls on the 27 EU member states to procure at least 40% of their defense equipment collectively by 2030 and aims to have the value of intra-EU defense trade to represent at least 35% of the EU defense market, it added, Reuters reported.
"To increase European defense industrial readiness, member states need to invest more, better, together, and European," the EU Commission said in a statement.
The Russia-Ukraine war has prompted many European countries to increase defense spending, though EU officials have argued purely national efforts are less efficient and want EU bodies to play a greater role in defense industrial policy.
The EU Commission also seeks to help the European defense industry prepare better for existing and potential major challenges such as a sudden surge in demand for large amounts of artillery ammunition.
The Commission also proposed to use a share of the profits made on frozen Russian assets to fund arms purchases for Ukraine.