The European Commission and the European Investment Fund (EIF) on Friday announced the launch of a new 175 million euro ($191.57 million) fund to bolster defence and security innovation.

The Defence Equity Facility is expected to leverage around 500 million euros in total investment by attracting investments from private equity and venture capital funds.

The fund is part of the bloc's efforts to play a greater role in defence policy and stifle business activity in a sector seen as decisive in the face of internal security threats and various armed conflicts in Europe's close neighbourhood.

It will focus on technologies with civilian and defence applications over the next four years, the commission said. REUTERS