The United Kingdom has put forward a proposal to create a European rearmament bank aimed at enhancing the continent’s defense capabilities and providing support to Ukraine in its conflict with Russia.
The plan entails an initial government investment of £10-20 billion, which would leverage up to £100-200 billion in private capital for military funding.
As reported by The Times, this initiative follows the model of the European Bank for Reconstruction and Development, offering a large-scale financing solution without imposing excessive financial burdens on individual member states.
The bank would permit participation from non-EU nations, including Britain, Norway, Japan, and the United States, while allowing neutral EU countries such as Austria, Ireland, Malta, and Cyprus to opt out.
The framework is based on a capital subscription system, requiring an initial payment of around 10% of the total capital, with the remainder callable. This approach enables the bank to secure a strong credit rating and borrow from capital markets, according to The Times.
Supporters contend that this financial model would help Europe increase military spending without heavily impacting national borrowing capacities.
