EU Member States to Borrow Billions in Euros from the EU and Potentially Use the Funds to Aid Ukraine, According to Politico
The European Union has launched a new programme, the Security Fund for Europe, offering tens of billions of euros in cheap loans for weapons purchase. This initiative encourages joint arms purchases among participating countries, aiming to promote cost savings and foster collaboration. Under this scheme, countries can combine their resources to negotiate lower prices for weapons, which can then potentially be transferred to Ukraine to aid in its defence. Countries participating in joint weapons purchases under the Security Fund for Europe can benefit from these cost savings, while those not taking loans can still reap the benefits through reduced weapon costs. Countries such as the Czech Republic, Latvia, Bulgaria, Greece, France, Belgium, Bulgaria, Cyprus, the Czech Republic, Estonia, Spain, Finland, Hungary, and Lithuania have expressed interest in obtaining these loans. The deadline for submitting applications for this programme has passed, with the Czech Republic officially expressing interest in using the funds to support Ukraine, excluding Germany, Sweden, and the Netherlands from this list, who are more likely to refuse the loan. The Security Fund for Europe has a total value of 150 billion euros, making it a significant financial commitment from the EU. This scheme not only offers cost savings on arms purchases for participating countries but also provides an opportunity for these nations to potentially help Ukraine in its time of need. While the loans may be used to help Ukraine, it is important to note that the decision to do so lies with each individual country. As the situation continues to evolve, it will be interesting to see how many countries decide to utilise these funds to support Ukraine and contribute to the European Union's collective efforts in maintaining peace and stability in the region.
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