(Finance) – The new EU Fund for the defense of 150 billion euros, proposed today by the president of the European Commission Ursula von der Leyen as part of the “Rearm Europe” plan, it almost exactly follows the model of the fund On 100 billion euros, Established in 2020 and successfully employed to support European loans with the layoff systems of the Member States, protecting jobs during the Covid pandemic crisis.
This is what they explained today in Brussels, community qualified sources, Confirming that even in this case it will be a fund fed by debt emissions that the Commission will make on the market, with its low interest rates, to finance the loans that Member States will be able to ask for in order to invest them to increase the defense capacity of their industry. When they have reached the expiry, the loans must be returned by the beneficiary Member States, which will also pay the interests, however very low (lower than the interest rates of about twenty of the 27 EU countries).
Community sources have specified that compared to the nose there is only one difference: In 2020 the multi-year EU budget then running (2014-2020) was running out, and there was not enough margin to be able to provide all the financial guarantees necessary for the operation; Therefore, complementary guarantees that were made available by the Member States had to be resorted to. Today, however, the multi-year community budget (2021-2027) is still halfway, And therefore there is quite margin so that it can provide all the necessary guarantees alone, without national additional contributions.