Admin I Tuesday, March 11, 2025
BRUSSELS – The European Union, EU has vowed to create a new European instrument of up to €150 billion, to support member states in boosting the defence capabilities.
President of the European Council, Antonio Costa, who made the revelation at a press conference said leaders were about the need for flexibility within the Stability and Growth Pact.
“Because member states will invest much more in defence – and our common fiscal rules need to allow them to do so. In a sustained and sustainable way. Flexibility in channelling existing European funds to defence will also be important – for those member states that choose to do so.
“ Also, the European Investment Bank’s initiative to broaden its mandate – for more loans to the defence sector – will improve access to private financing. And have a positive effect on private banks”, he said.
Costa added that a stronger European defence also provides deterrence for Ukraine, noting that efforts to strengthen European defence will also benefit Ukraine since Ukraine’s security is at the core of Europe’s security.
“We have been with Ukraine since day one. We have already provided more than €135 billion in support to Ukraine since 2022. Our support is unwavering. If the war continues. In any future peace negotiations. In reconstruction. In accession to the European Union.
“And we have now committed to increasing our support even more. Immediately, member states can increase their support thanks to the increased fiscal space. Several member states have already announced their pledges up to €15 billion. Today, we have also tasked the Council to work urgently on further initiatives to address Ukraine’s pressing military and defence needs.
“At the same time, we are preparing to support Ukraine for when it decides to engage in negotiations. To help it reach a positive outcome, that means a just and lasting peace”, he said.
