Ms Lenka Filipkova:

Absolutely. In compliance with Article 41.2 of the Treaty on European Union, the Union budget does not fund expenditure arising from operations having military or defence implications under the Common Foreign and Security Policy. The Union budget provides support for the EU defence technological and industrial base under Article 173 of the treaty by incentivising the supply side, for example, research and development or upgrades of production facilities, and the demand side, for example, procurement co-operation between EU member states. Any expenditure for military or defence operations is out of the scope of these industrial support programmes and any such expenditure, if necessary, has to be funded in accordance with Article 41 through off-budget instruments such as the European Peace Facility.

Indeed, the European Peace Facility is over budget because it finances directly military and defence operations.