UK suggests to EU establishment of institution with fund to finance defence projects

defensa

BancaMarch | United Kingdom proposes to the European Union the creation of a supranational institution including a joint fund to finance defence projects. The document is an informal proposal drafted by the British Treasury. Next week, EU finance ministers and their counterparts from the UK and Norway will meet to discuss the financing of defence spending. In the British proposal, the purchased equipment would be recorded on the balance sheet of the supranational institution, preventing the initial capital from being accounted for in the countries’ budgets. The nations would pay into the fund and account for it in their budgets once they received the military equipment. Some EU members are sceptical, stating that it may take a long time or that its approach is similar to the already approved €150 billion defence fund for granting loans to EU countries.

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