EU launches €150 billion fund to rearm and support Ukraine - FT
Photo: EU creates fund for rearmament and assistance to Ukraine (Getty Images)
EU capitals have reached a political agreement to create a 150 billion euro loan fund to finance arms, Financial Times reports.
Sources say that the mechanism will allow member states to take loans from Brussels and use them to purchase weapons, mainly through joint orders.
This is a historic step for the European Union, triggered by Russia's war against Ukraine and pressure from US President Donald Trump, who has repeatedly called on Europe to finance its defense.
The initiative was promoted by the European Commission at the beginning of the year.
On Monday morning, the countries of the bloc reached a preliminary agreement on the parameters of the fund. Formal approval is expected on Wednesday.
It is expected that the new fund will become the basis for a large-scale rearmament of the continent, amid growing threats from Russia and uncertainty in transatlantic relations.
Europe's rearmament plan
European Commission President Ursula von der Leyen stated that Europe urgently needs to be rearmed. Later, she presented a plan.
It envisages mobilization of 800 billion euros and includes loans of 150 billion euros for defense needs. The funds will be used for the production of air defense equipment and the modernization of defense infrastructure among EU member states.
One of the main aspects of this plan is to expand the use of public funding in the defense sector, which will allow EU countries to make large-scale investments in the development and production of new defense technologies.
Earlier, all 27 EU member states agreed on a plan to rearm Europe.
