Britain has proposed to European countries the creation of a “supranational” fund that would be responsible for the centralized procurement of military equipment, stockpiling of weapons, and financing of rearmament on the continent. According to the Financial Times, the new fund would be able to attract financing on favorable terms in financial markets, provide loans for military projects, and directly purchase weapons.
This is reported by Business • Media
Although the specific amount of funding has not yet been determined, it is reported that Europe faces a defense funding shortfall of hundreds of billions of euros, which could be addressed through this instrument. The proposed fund would allow participating countries to acquire armaments without adding additional burdens to national budgets, financing purchases through loans and guarantees.
Among the potential purchases that could be made through this fund are ammunition, spare parts for tanks and aircraft, air defense systems, and more.
However, not all European governments view this initiative positively. One official noted that the idea may be “impractical,” as its implementation could take a significant amount of time. Another official emphasized that the European Union is already working on establishing its own defense fund worth €150 billion.