Europe Creates New Defense Fund with Participation from Britain, Ukraine, and Norway

Finance ministers of the European Union plan to discuss an initiative to create a joint intergovernmental defense fund on April 12. This fund aims to provide substantial defense financing without increasing the level of public debt, which is an important aspect for many countries with high debt levels.

This is reported by AgroReview

The discussion of the initiative is part of a broader conversation about ways to finance preparations for potential threats from Russia. European governments recognize that they can no longer fully rely on the United States for security matters.

The European Union is already planning to increase military spending by 800 billion euros over the next four years. This will be made possible by easing fiscal constraints on investments in defense projects and through joint borrowing, which will be secured against the EU budget to fund major defense initiatives.

The defense fund will be established under an intergovernmental agreement and promises to have significant capital. Non-EU countries such as Britain, Ukraine, and Norway may also join the European Defense Mechanism, allowing them to participate in joint financial initiatives.