[FoxNews] The EU's budget cannot be used to fund defense directly, and some NATO experts are proposing a global defense bank
As NATO member states struggle to meet their defense spending goals and war rages on Europe's eastern front, officials are struggling to agree on a plan to shore up hundreds of billions of dollars to bolster defenses.
Eight NATO countries did not meet their 2% target for defense spending in 2024. And as many member states struggle with chronically stressed budgets, calls to meet those goals are not being heeded quickly.
The European Commission estimates about 500 billion euros, the equivalent of $524 billion in investments, are needed in the coming decade to defend Europe against evolving threats.
The EU's budget cannot be used to fund defense directly, and some European officials and NATO experts are proposing a global defense bank to dole out funds for military modernization.
A defense, security and resilience (DSR) bank would issue bonds backed by AAA ratings for financially strapped countries to upgrade their defenses and would provide guarantees for commercial banks to offer credit to defense suppliers. |