On December 5, 2024, discussions within the European Union have intensified regarding the establishment of a joint defense fund exceeding €500 billion. This initiative aims to create a financing mechanism for military equipment in response to concerns about the new U.S. administration under President Donald Trump.
According to the Financial Times, many European officials are apprehensive about potential distancing from the White House on defense and security issues. The proposed fund would issue bonds backed by national guarantees from participating member states, rather than from the EU as a whole.
The report indicates that European officials are moving forward with this plan, abandoning previous proposals for 'Eurobonds' for defense, which faced opposition from several EU countries. Participation in the fund will be voluntary, likely reducing resistance.
Furthermore, this financial body would also be open to non-EU countries, such as the United Kingdom and Norway. The model is gaining traction among several EU member states, including Greece.
Kyriakos Mitsotakis, the Prime Minister of Greece, commented that initial responses from leaders regarding European cooperation were lukewarm, but he now senses a 'renewed sense of urgency.'