(Alliance News) - EU countries on Wednesday agreed to set up a fund worth up to EUR150 billion for joint arms procurement.

The loans are to be used to invest in air and missile defence, artillery systems, missiles and ammunition, drones and anti-drone systems, and to address other needs from cyber to military mobility, European Commission President Ursula von der Leyen said when she presented the plans in March.

Current rearmament efforts in Europe are intended to deter Russia from possibly attacking another European country after Ukraine. Intelligence agencies assume that Russia will be in a military position to start another war by 2030 at the latest.

Pressure on the EU to significantly increase defence spending and aid to Ukraine has intensified further after Washington suspended US military aid to Ukraine and put its commitment to safeguarding Europe into question.

"We're living in the most momentous and dangerous of times," von der Leyen said at the time. "This is Europe's moment and we must live up to it."

Von der Leyen hopes that together with private capital and additional funding from the European Investment Bank, the fund could mobilize up to EUR800 billion for defence.

The new fund, which still needs to be formally approved by EU ministers next week, is part of a set of initiatives to improve Europe's defence capacities.

The commission also allows member states more leeway for defence spending under the EU's usually strict debt and deficit rules.

source: dpa

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