On April 12, EU Ministers of Finance will discuss the creation of a joint defense fund that will purchase, own, and provide defense equipment for EU countries, as well as charge fees for its use. This is stated in a document prepared for discussion, which was reviewed by Reuters.
The document was developed by the Bruegel think tank at the request of the Polish EU Presidency and could provide significant defense funding without increasing national debt, the report notes. The EU already plans to increase military spending by 800 billion euros over the next four years by relaxing fiscal restrictions on defense investments and jointly borrowing funds for large defense projects.
The defense fund, which will be discussed on April 12 at an informal meeting of EU finance ministers in Warsaw, will complement previously announced financial initiatives. The European Defense Mechanism (EDM), created under an intergovernmental agreement, will have significant paid-up capital, enabling it to borrow funds on the financial markets.
The fund will focus on “strategic implementation factors,” such as expensive military infrastructure and equipment often provided by the United States. This includes command and control systems, satellite intelligence, the development of fifth- and sixth-generation fighters, integrated weapon systems, missiles, and nuclear deterrence.
