EU and UK in talks about Europe-wide defence funding amid fear of US pullback

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Britain will join European Union leaders this week in groundbreaking talks about setting up Europe-based defense funds this week, as the continent is fighting to increase its military forces in the disappearing US security blanket.

UK Chancellor Rachel Reeves will discuss with other European finance ministers at the G -20 meeting in Cape Town this week, since the Ukraine war entered the fourth year.

“It can be any fund or bank. For example, it has ideas Relating bankWhich we are also considering, “Polish finance minister Andrezz Domsky says.

Domsky told the Financial Times that discussions with the UK for months, he added: “It is difficult to imagine Europe’s defense without Great Britain.”

The UK Treasury has confirmed that Reeves will increase defense financing proposals with its European parts “, but said the discussion was in the early stages.

Donald Trump has claimed to increase defense expenses for European NATO allies by 5 percent of the GDP, which is still at risk to lose US security from the existing 2 percent target.

The US President is quickly re -associated with Russia, a country that most European countries see as a threat of existence, collectively initiate discussions on how to increase Europe’s defensive power and reduce dependence on American troops and weapons.

Sunday Germany’s arrival Chancellor Frederich Merge It was declared that Germany had to fundamentally rebuild its security systems and ended a decade long dependence on Washington, that Trump was “originally indifferent” about Europe’s fate and needed to “achieve independence”.

During a call this weekend between European Commission President Ursula von Der Lane and UK Prime Minister Care Starmer, the European defense expenses were widely discussed, and a person called for Von Der Lane and Norwegian Prime Minister Jonas Gahar Steer.

European countries are looking for ways to increase defense power during the strictly limited national budget. With the benefits of national guarantee, a bank will allow countries to increase their balance sheets without increasing their balance sheets.

The UK is seeking ways to increase defense expenditure from 2.5 percent to 2.5 percent of GDP, while at least $ 5 billion is spent in a year, when its ability to increase the costly financial rules is limited to heavily.

One of the proposals is General Sir Nick Carter, a former head of the British military, who suggested a “reaction bank” to tap Europe’s savings pool, model for the restructuring and development of European banks – supporting the established Central and Eastern Europe after the fall. Iron screen to do.

“Treasury is interested in it,” said a person involved in the discussion with Reeves. However, Treasury officials said that the table had many multilateral financing models and the next step was the free mind of the Reeve.

Experts say that one of the advantages for Carter’s “Rearament Bank” is that it will reduce the impact of additional defense expenditure on financial rules.

Andy King, a former UK officer, who is now in the consultant Flint Global, says that the national bank was likely to raise “financial rules” without materially influenced by a significant resource for defense. He added: “This is not a specific result: the details are important in terms of how the entity was structured and how it used its ability to give its nding.”

The EU leaders ‘meetings at the end of March will discuss the general defense needs, and the goal of Poland is to make the EU finance minister’s rally in April, before the leaders’ decision in June.

The European Commission has said that this month they will partially lift EU financial rules to allow countries to invest in defense, a step that allowed countries to take Orrows without ban.

Von Deer Lane has also opened the door for “general European financing” on general defense projects and is expected to give details of fund alternatives in March.