New European bank? The Minister of Foreign Affairs believes that in Europe he could arise Bank for armament. He pointed out that the European Bank of Reconstruction and Development is not in its mission to support defense, hence the projects in this area could be financed using a new general European financial institution. – There is a new idea that I like – said the Polish minister. He referred to the proposal from mid -January, which was submitted by the former British defense head General Nick Carter, a former member of the Ebor Guy de Selliers Executive Committee and a senior advisor at the European Policy Analysis Center in Washington Edward Lucas.
How would this work? As Radosław said SikorskiEuropean bank It would be to be rearranged modeled at the European Investment Bank. EBI borrows money in international markets and then gives preferential loans. However, he cannot finance purely military projects, e.g. buying ammunition or military equipment. The above -mentioned proposal assumed Participation in the initiative of countries outside the EUlike Great Britain, Norway, Japan and the USA.
Policy for Europe: According to Sikorski, strengthening of EU defense is “insurance policy”which, however, requires a lot of money. However, it is difficult to develop a consent to increase membership fees to budget EU. You can use money that has not been efficient from various EU “drawers”. You can also consider the issue of joint bonds, as it was done after Pandemia, to raise funds for the reconstruction of the economies hit by Lockdowny – however, there is also no consent in the EU. According to the head of the Polish Ministry of Foreign Affairs, the solution could be a new bank – and such an idea he supports.
Giant money: The European Commission estimates that The EU needs EUR 500 billion within 10 years to finance defense.
Source: IAR, Reuters