Finland, the Netherlands and the United Kingdom are exploring a new multilateral mechanism to jointly finance and procure weapons, munitions and other military equipment with the aim of accelerating defense investment and expanding demand amid Europe's broader rearmament push, according to a March 17 joint statement by the three governments. The arrangement could be established by 2027, would complement existing NATO and EU initiatives and could later be opened to additional NATO members and like-minded partners, pending unanimous approval by the three founding countries.

The proposal comes as European NATO allies seek ways to raise defense spending, close capability gaps and respond to U.S. pressure for greater burden-sharing after committing in 2025 to lift defense expenditure to 3.5% of gross domestic product by 2035, even as tight fiscal positions across several governments complicate plans to fund those ambitious targets. The announcement also came right ahead of a London meeting between British Prime Minister Keir Starmer, Ukrainian President Volodymyr Zelensky and NATO Secretary General Mark Rutte.