# EU defense procurement and budget dispute > Live situation record from CLSTR: https://clstr.news/situations/eu-defense-procurement-and-budget-dispute > Updated: 2026-09-25T08:29:29.000Z. Sources: 5. Developments: 2. Disputes have emerged regarding the European Competitiveness Fund (ECF) within the proposed 2028–2034 EU budget. The conflict involves disagreements over whether defense procurement should prioritize European-made products. The United States has threatened the European Union with retaliatory measures if Brussels maintains provisions that favor EU-made goods. Washington warned that expanding these preferences could lead to a rollback of existing ‘Buy American’ Act waivers currently granted to 19 EU member states. The U.S. suggested a ‘made with Europe’ or ‘made in NATO’ approach instead of protectionist policies. Internally, European nations are divided. Twelve countries, including Germany, Italy, and the Netherlands, have issued a non-paper opposing a French proposal to prioritize EU-based providers within the ECF. These nations argue that keeping defense programs open to non-EU military allies enhances interoperability and standardization. They also advocate for the continued participation of Ukraine and EEA countries in the defense industry sector. ## Timeline ### 2026-09-25: EU nations oppose French proposal for preferential defense procurement Twelve EU nations are challenging France's push to prioritize European companies in defense spending, arguing for openness to non-EU allies to ensure military interoperability and supply chain resilience. 2 sources. https://clstr.news/cluster/eu-nations-oppose-french-proposal-for-preferential-defense-procurement ### 2026-09-15: United States threatens EU retaliation over budget preference provisions The US has threatened retaliation against the EU over budget provisions that favor European-made goods, specifically targeting a €402 billion competitiveness fund that could impact defense procurement. 3 sources. https://clstr.news/cluster/united-states-threatens-eu-retaliation-over-budget-preference-provisions --- Cite as: EU defense procurement and budget dispute. CLSTR, https://clstr.news/situations/eu-defense-procurement-and-budget-dispute