The European Union on Tuesday proposed closer integration of its defense industry with Ukraine, amid ongoing uncertainty over a U.S. peace plan and Russia’s continued unconventional warfare.

EU Defense Commissioner Andrius Kubilius told lawmakers in Strasbourg that Ukraine’s defense industry “needs us, but we need Ukraine’s defense innovations even more.” He said granting Ukraine access to the EU’s Defence Investment Program would allow the procurement of military equipment “in, with and for Ukraine.”

EU lawmakers are set to vote on a 1.5-billion-euro ($1.7 billion) program, including 300 million euros ($345 million) for the Ukraine Support Instrument. EU defense spending is expected to reach 392 billion euros ($450 billion) this year, nearly double the level before Russia’s full-scale invasion of Ukraine in 2022.

The European Commission plans to increase the EU’s long-term defense and space budget to 131 billion euros ($153 billion) over the coming decade and urges member states to source military equipment largely within the bloc, with EU support to lower costs and speed up delivery.

Kubilius said EU defense companies could access tax breaks and financial incentives for joint European defense projects that no single country could manage alone, such as Eastern Flank Watch, Drone Defense Initiative, or Space Shield. He added that Ukrainian participation would inject “military innovation” into the EU’s defense industry.

Last week, the European Commission introduced a new defense package to enable faster deployment of troops and tanks across Europe, along with the EU Defense Industry Transformation Roadmap, aimed at simplifying regulations and directing investment into domestic production of weapons, vehicles, satellites, and ammunition.