Citing an internal memo circulating in Whitehall, the report suggests the draft proposal was submitted to Britain’s key European allies last week. The document, however, does not represent the government’s official position on the matter.
While it does not specify funding amounts, the draft notes that the fund could help cover Europe’s defense shortfall, estimated at “hundreds of billions of euros.”
The institution would allow participating countries to acquire weapons without overstraining their national budgets. Its primary advantage, according to the document, is that governments would pay for arms and ammunition only when they are retired from service.
Potential purchases include tank and aircraft parts, artillery shells, anti-aircraft ammunition, explosives, helicopters, and even aircraft carriers.
At a March 6 meeting in Brussels, European leaders backed the European Commission’s plan to boost EU defenses, including a major rearmament initiative. They also urged the EU Council to promptly consider allocating EUR150 billion ($163 billion) in credit for arms procurement.