EU considers tapping €93bn in unspent Covid recovery funds for defence

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The EU is discussing its defense in 93 billion euros in the unused epidemiological recovery funds, after investing in investment and military expenditures, can bring back US security support from the continent.

European Commission President Ursula von Ter Leye celebrates the funding option at the European People’s Party Center on Tuesday, according to four people, with the knowledge of the discussion.

Additional funding needs of the bloc protection They are estimated at about 500 billion euros over the next decade.

The EU may also doubles regional development, the von Ter Leyen said, “General European Funding” said, as one more option is launched by one of the familiar people.

European officials have been Discussing the plan To create an intergovernmental fund for defense in recent months, it is possible that the United Kingdom and Norway, not as the EU. This option would bypass the veto of neutral or Russia-friendly countries, which are not in favor of using joint debt for protection.

European loan can also be more enjoyable in capitals, including Berlin, where the prospect of another round of EU debt is very controversial, in particular with the German federal elections on Sunday.

Have a group of experts in the UK offered “upgrading bank” Modeled on the European Bank for Reconstruction and Development, where the participating governments will provide its capital – 100 billion euros as a proposed basket, but only 10% in front of them. The bank would pay the rest in capital markets, helping a strong credit rating.

In the absence of an agreement, the EU capitals have been pushed for fresh joint borrowing commission All obscene remedies under his control.

In the ability of 93 billion euros, the incomplete remedies (RRF) presents unused tools, a total of 800 billion euros in grants and loans, which agreed to promote their farms after the epidemic. Several capitals, including Berlin, only agreed to postpone the fund, provided that the joint loan is lump summer.

Unused RRF funding will require changes to the foundation’s rules that should support the majority of EU countries and the European Parliament, the commission spokesman said.

The rest of the means that will be provided as loans can be used for research and development programs, such as the so-called double-use infrastructure investments, such as airports that have airports.

The Commission is another option to study repeat the so-called consolidation measures which are allocated to the minimum EU developed regions.

“Based on the new approach, except for double-use investments, unity policy can now support the defense sector, it greatly treating it as any other industry, which has seen Financial Times.

“Investing in R & D directly aimed at the development of new military technologies or. A number of investments that strengthen defense production will now be eligible to contribute to regional development, “the post said.

EU countries will also be allowed to increase their national defense budgets without imposing sanctions without the fiscal rules of the bloc. Von leien unattended At a Munich Security Conference on weekends.

The von Ter Leyen spokesman did not immediately respond to the comment request.