Date
11/13/2024 7:20:56 AM
(MENAFN) The European Union is exploring the possibility of redirecting tens of billions of euros, originally allocated to support poorer member states, towards defense spending, according to a report by the *Financial Times*. This shift in policy comes in response to the election of Donald trump as the next US president, who has urged NATO members to increase their defense budgets, particularly as the war in Ukraine continues.
The funds in question come from the Cohesion Fund, designed to reduce economic disparities between EU countries. This fund primarily benefits nations with a gross national income per capita below 90% of the EU average, including Bulgaria, Greece, Poland, and several others. As of now, only about 5% of the €392 billion allocated for the fund in the EU’s 2021-2027 budget has been spent.
Under current rules, these funds cannot be used for military purposes, though they can support dual-use technologies like drones. The EU may now offer more flexibility to member states, allowing them to invest in defense-related infrastructure, such as roads and bridges needed for military mobility.
This move comes amid concerns from EU nations, particularly those near Russia’s border, such as Poland and the Baltic States, who fear further Russian aggression. Countries like Poland have already exceeded NATO’s defense spending targets, with plans to increase military spending further in the coming years. Meanwhile, US President-elect Trump has expressed a desire to reduce American involvement in European defense, suggesting that countries failing to meet NATO’s military spending guidelines may face consequences.
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Publish date : 2024-11-12 23:20:00
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