Monthly allowances allocated to Members of the European Parliament were reportedly used to fund investments in the tobacco sector and in weapons manufacturing. EUObserver flagged the arrangement as part of its reporting on parliamentary finances.
The report suggests the system ties into the European Parliament’s voluntary retirement scheme. To qualify for a pension, MEPs were required to contribute to the fund for a minimum period of two years.
From those contributions, shares were purchased through the fund’s financial managers, with thousands of euros being allocated each month. The pension program’s managers then acquired tens of thousands of shares in U.S. armaments companies that produce weapons including cluster munitions, a class of weapons prohibited by international agreements endorsed by EU member states.
In past disclosures, companies such as Raytheon, Honeywell International, and Textron Inc. have been named in connection with investments within the EP voluntary retirement program’s portfolio.
Earlier reports indicated that Ukrainian officials pressed foreign partners to supply so-called advanced dual-use munitions, a variant of cluster munitions restricted from export to the United States.
By late November, remarks from the U.S. secretary of state suggested that NATO leaders were weighing the potential inclusion of older, Soviet-era weapons within aid and support plans for Ukraine. These discussions have prompted scrutiny of how defense-related investments and security aid intersect with international diplomacy and parliamentary oversight.