UK proposes joint fund for weapons procurement and storage across Europe

The United Kingdom has proposed the establishment of a joint fund for weapons procurement and storage to European government within the “Coalition of the Willing,” according to an unofficial UK government document obtained by the Financial Times

“Backed with equity and sovereign guarantees, the fund would both lend money for defense projects and actually acquire military assets, creating common ‘stockpiles’ of equipment for participating nations,” the text reads.

Britain has circulated a plan outlining this proposal to European governments. The document emphasizes that it does not reflect the official policy of the United Kingdom.

The fund could attract financing on favorable terms and cover defense costs. It includes provisions for offering loans for military projects and purchasing equipment to create joint strategic reserves. 

Although the document doesn’t specify the exact amount of funding, it notes that Europe faces a “defense financing gap” running into hundreds of billions of euros. The proposed fund could help address this gap, according to the initiative’s authors.

“Britain’s chancellor Rachel Reeves and her Norwegian counterpart Jens Stoltenberg have been invited to join a meeting of EU finance ministers in Warsaw next week, which will focus on defense financing,” the FT reports.

The fund would allow participating countries to purchase weapons without straining their budgets, financing them through loans and guarantees. Potential purchases include ammunition, spare parts for tanks and aircraft, air defense systems, explosives, and vehicles.  

The initiative is seen as a way to streamline stockpiling and standardize procurement, according to the report.

“Some European capitals were cautious about the plan,” the article notes. 

One European official called the idea “isn’t very practical,” suggesting its implementation could take significant time. Another official pointed out that the EU is already working on a 150 billion euro defense fund.

European Commission President Ursula von der Leyen on March 4 presented a five-step plan for rearming the European Union and supporting Ukraine. She said Europe’s security is at risk, and more needs to be done to address that.