US EditionEuropean crisis fund worth over $500 billion could be used for defence, says ESM chief
The European Stability Mechanism could offer €430 billion in loans to eurozone countries for defence spending without strict economic reforms, aiding smaller states near Russia.
- The ESM head told Reuters that Pierre Gramegna said the European Stability Mechanism could lend to finance defence, with over 430 billion available for euro-zone countries.
- Amid increasing geopolitical pressure, European leaders face calls to boost military spending after Russia's invasion of Ukraine and strained United States ties, with Gramegna highlighting smaller euro-zone states' stretched budgets.
- Modelled on past pandemic support, the plan would let euro-zone member states request collective loans earmarked for defence without draconian terms, excluding non-euro EU members like Poland.
- Political pushback could come from Germany and militarily neutral countries such as Austria, Cyprus, Malta and Ireland, as the European Stability Mechanism mission does not explicitly include defence.
- A proposed defence support line could lend up to 2% of output as Enrico Letta suggested, but Gramegna said member countries must initiate the process.
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The Straits Times
UpstractEuropean crisis fund worth over $500 billion could be used for defence, says ESM chief
FRANKFURT, Jan 30 - A European crisis fund with more than 430 billion euros ($514 billion) of firepower could lend money to countries for defence, the head of the European Stability Mechanism told Reuters, as the bloc scrambles to reinforce its military. Read more at straitstimes.com.
Exclusive: European crisis fund worth over $500 billion could be used for defence, says ESM chief
A European crisis fund with more than 430 billion euros ($514 billion) of firepower could lend money to countries for defence, the head of the European Stability Mechanism told Reuters, as the bloc scrambles to reinforce its military.
$500 billion crisis fund may be tapped for defence: ESM chief
Europe's crisis fund, the European Stability Mechanism, may now lend billions for defense. This move aims to bolster military strength amid geopolitical turmoil. Countries could access funds for defense spending without strict economic conditions. This repurposes a fund initially created during the euro zone debt crisis. The initiative could particularly benefit smaller nations bordering Russia.
A European Crisis Fund, worth more than 430 billion euros, within the framework of the ESM, could be used to strengthen European defense by providing loans to member states.
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