Europe is considering creating another defense fund: Britain, Ukraine, and Norway would be eligible to join the initiative.

EU finance ministers will discuss the creation of a joint intergovernmental defense fund on April 12, which would provide large-scale defense financing without increasing public debt levels, a growing concern in many highly indebted countries. The discussions are part of a broader debate on financing preparations for a potential Russian attack, as European governments increasingly recognize that they can no longer fully depend on the US for their security.

The EU already plans to boost military spending by €800B over the next four years by easing fiscal constraints on defense investment and jointly borrowing for major defense projects, secured by the EU budget. This defense fund will be in addition to previously announced financial initiatives.

This initiative, known as the European Defense Mechanism (EDM) will be established under an intergovernmental agreement and will have significant capital. The EDM, which may also issue loans, would include countries outside of the EU, such as Britain, Ukraine, and Norway.