It should create a multilateral fund that will borrow funds in markets at a desirable rate and maintain defense costs.
Great Britain recommends to create a joint European funding for the purchase, accumulation and financing of re -equipment of military equipment. This was reported by the Newspaper Financial Times with a reference to an unofficial document prepared by officials of the British Ministry of Finance.
The document provides arguments in favor of creating a multilateral fund for the “Coalition of Decisive”, which will occupy funds in markets at desirable rates and maintain defense costs. Backed of joint stock capital and sovereign guarantee, the fund could not only borrow money for defense projects, but also actually buy military properties, creating joint equipment equipment for participating countries.
It was reported that last week this unofficial document was sent to major European chapters for discussion, but noted that this was not the official British government policy.
Without specifying the estimated amount of funds, the document said these steps would help overcome the lack of financing of European defense, which is estimated to be the billions of euros.
According to the publication, the main goal of the new tool is to “get properties on behalf of the member countries” in a financial structure that will free the over -the -national budget from investment costs.
Although suggested funds may help stimulate communal purchases and ensure funding of small defense companies, its main advantage is to supply the accumulation of weapons and ammunition which will only pay governments when they decide on them. The potential purchases indicated in the document include spare parts for military equipment, such as tanks and aircraft, artillery shells, ammunition for air defense, explosives and logistics, such as helicopters and aircraft. The institution is associated with other parts of the world sector in national accounts, and the weapons obtained by the institution will be considered on its own sheet of balance, and not in the balance of countries that make contributions.
It is mentioned that it will avoid the advanced capital costs for the purchase of equipment that falls on budgets of member countries.
After receiving the military equipment, the country will deposit funds and record them on their budgets.
“The idea is, (that the initial cost – ed.) Is not official,” said one of the officers.
Earlier it was reported that the European Union would not allow defense companies in the United States, Great Britain and Turkey to funding 150 billion euros until these countries conclude related security agreements with the EU.
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Source: korrespondent
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.