EU Might Finance Costly Arms for Ukraine – Reuters
Brussels has committed to financing Kiev's war efforts against Russia, despite US attempts to mediate a truce. This week, EU finance ministers will convene to discuss a new defense procurement and leasing mechanism that may include Ukraine,...
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Brussels has committed to financing Kiev's war efforts against Russia, despite US attempts to mediate a truce.
This week, EU finance ministers will convene to discuss a new defense procurement and leasing mechanism that may include Ukraine, as reported by Reuters.
The European Defence Mechanism (EDM) is part of Brussels' multibillion-euro militarization initiative. During an informal meeting in Warsaw on Saturday, ministers are expected to evaluate a paper drafted by the Bruegel think tank, which outlines the operations of the EDM.
This intergovernmental fund is designed to have its own capital, allowing it to borrow money for acquiring expensive weapons systems that could be leased to military forces. Membership may extend to non-EU countries, including the UK, Norway, and Ukraine.
By keeping costly weapons systems, such as advanced fighter jets and military satellites, on its balance sheet, the EDM would allow EU members to utilize these assets without breaching national debt limitations. "Frontline" states—those closest to Russia—would benefit from lower lease rates, subsidized by a dedicated trust, according to the preview.
In addition, EU leaders have affirmed their support for Ukraine against Russia, even as Washington's policy shifts under President Donald Trump, who aims to mediate a truce. This EU stance has faced criticism from some member states, including Hungary and Slovakia.
Critics have accused Brussels of harming the EU economy with sanctions aimed at punishing Russia and of risking an escalation of hostilities. Hungary has leveraged its veto power to gain concessions from the European Commission, particularly when major decisions supporting Ukraine required unanimous approval.
Brussels plans to borrow up to €800 billion over four years for military spending, arguing that the funding is crucial to prepare for a potential Russian attack. Moscow, however, denies any aggressive intentions, asserting that the conflict in Ukraine is a Western proxy war driven by NATO's expansion in Europe.
Last April, Josep Borrell, who was the EU's foreign policy and security chief at the time, stressed the EDM's aim to reduce fragmentation in EU military spending by implementing a Pentagon-like single buyer approach. He noted that European procurement is often hampered by member states' self-serving tendencies, unlike the US, where "members are not suspicious of each other when it comes to" weapon production.
Anna Muller for TROIB News
This week, EU finance ministers will convene to discuss a new defense procurement and leasing mechanism that may include Ukraine, as reported by Reuters.
The European Defence Mechanism (EDM) is part of Brussels' multibillion-euro militarization initiative. During an informal meeting in Warsaw on Saturday, ministers are expected to evaluate a paper drafted by the Bruegel think tank, which outlines the operations of the EDM.
This intergovernmental fund is designed to have its own capital, allowing it to borrow money for acquiring expensive weapons systems that could be leased to military forces. Membership may extend to non-EU countries, including the UK, Norway, and Ukraine.
By keeping costly weapons systems, such as advanced fighter jets and military satellites, on its balance sheet, the EDM would allow EU members to utilize these assets without breaching national debt limitations. "Frontline" states—those closest to Russia—would benefit from lower lease rates, subsidized by a dedicated trust, according to the preview.
In addition, EU leaders have affirmed their support for Ukraine against Russia, even as Washington's policy shifts under President Donald Trump, who aims to mediate a truce. This EU stance has faced criticism from some member states, including Hungary and Slovakia.
Critics have accused Brussels of harming the EU economy with sanctions aimed at punishing Russia and of risking an escalation of hostilities. Hungary has leveraged its veto power to gain concessions from the European Commission, particularly when major decisions supporting Ukraine required unanimous approval.
Brussels plans to borrow up to €800 billion over four years for military spending, arguing that the funding is crucial to prepare for a potential Russian attack. Moscow, however, denies any aggressive intentions, asserting that the conflict in Ukraine is a Western proxy war driven by NATO's expansion in Europe.
Last April, Josep Borrell, who was the EU's foreign policy and security chief at the time, stressed the EDM's aim to reduce fragmentation in EU military spending by implementing a Pentagon-like single buyer approach. He noted that European procurement is often hampered by member states' self-serving tendencies, unlike the US, where "members are not suspicious of each other when it comes to" weapon production.
Anna Muller for TROIB News
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