The United Kingdom presented an ambitious plan for the creation of a supranational institution designed to fund and acquire military equipment in conjunction with European countries. The information is from the newspaper Financial Times.
The proposal, which circulated between European capitals last week, suggests the formation of a multilateral fund that would allow participating countries to access funds to favorable loan fees, as well as creating shared weaponry stocks.
Although still in the early stages, the document does not represent an official policy of the British government, according to a spokesman.
The initiative seeks to fill an estimated financing gap in hundreds of billions of euros in the European defense sector.
The fund would be supported by sovereign guarantees and equity, allowing both the financing of defense projects and the direct acquisition of military assets.
Among the items mentioned are spare parts for tanks and aircraft, artillery ammunition, explosives and logistics aircraft.
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The proposed financial structure would also prevent initial costs from directly impacting the national budgets of participating countries.
The proposal comes in a moment of growing concern for European security, especially in the face of uncertainty about United States commitments in the region.
The pressure for increased defense spending has been intense, but many countries face high deficits and limitations to new loans.
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The supranational fund could offer a solution by allowing countries to acquire equipment only when necessary, reducing initial costs and promoting greater inventory management efficiency.
In addition, the proposed model could benefit smaller defense companies and facilitate exports by providing competitive financing for international projects.
Unlike initiatives in the European Union, such as € 150 billion loan fund, the new instrument would include countries outside the bloc, such as the United Kingdom and Norway.
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The proposal also surrounds restrictions by the European investment bank, which cannot directly finance the manufacture of weapons and ammunition.
