The European Commission has proposed the creation of a EUR 15 billion fund to invest in strategic companies weakened by the COVID-19 crisis, Reuters reported.

The proposal, which needs to be approved by EU governments and lawmakers, was put forward after companies around the world became vulnerable to hostile takeovers as stock prices fell and funding opportunities declined during the crisis.

According to EU industry commissioner Thierry Breton, the new facility could buy stakes in, or offer loans to, strategic companies in healthcare, space, defense, digital and green technologies fields.

Concerns over the vulnerability of some European companies rose in March after reports that the US administration was considering gaining access to Germany-based CureVac, a biotechnology firm working on new technology that could cut vaccine costs. In response, the European Commission promised to allocate EUR 80 million to CureVac.

EU financial support will be provided to companies “that need more capital to continue their expansion,” Breton said, adding that this will also allow companies to avoid aid from unwanted partners.

The Commission estimates that the EUR 15 billion that will be borrowed in the financial markets  “could generate investments of up to 150 billion euros” in the 2021-2027 period, the EU document says.

The fund is part of a broader EU plan to support companies in need of financial aid.