Britain has proposed that European countries create a supranational fund for centralized purchases of military equipment, accumulation of weapons stocks, and financing the continent’s rearmament. It is assumed that the new fund would be able to attract funds on favorable terms in financial markets, provide loans for military projects, and purchase weapons directly. Although a specific funding amount was not specified, there is a known European defense financing deficit of hundreds of billions of euros, which could be addressed by the new instrument.
The proposed fund will allow participating countries to purchase weapons without additional burden on their national budgets, instead financing weapons purchases through loans and guarantees. Among the potential purchases are ammunition, spare parts for tanks and aircraft, and air defense systems.
However, some European governments have expressed caution toward this initiative. One official called the idea “impractical,” explaining that its implementation would require a long time. Another official stressed that the EU is already working to create its own €150B defense fund.