Europe will be arming itself. The establishment of a peculiar bank

We live in dangerous times. Europe's safety is at very real risk said Ursula von der Leyen in Brussels.

The president of the European Commission forwarded the plan to the associate States, and on Thursday the leaders of the 27 EU countries will meet at an extraordinary summit in Brussels to discuss this issue. The plan provides for a fund to supply EUR 150 billion in loans to EU countries for joint investment in defence. As Ursula von der Leyen explained, it aims to help associate States rapidly and importantly increase defence capacity expenditure. The plan consists of 5 points.

Plan in 5 points

The first step is to alleviate the deficit and debt rules so that defence spending is excluded from the limits and that states are not penalised for exceeding them.

If associate States increase defence spending by an average of 1.5 percent of GDP, this could make fiscal space of nearly EUR 650 billion over 4 years said the EC President.

The second component of the plan is the creation of a EUR 150 billion debt package for associate States to invest together in defence. The aim is to spend resources more efficiently and to cooperate in creating pan-European defence capabilities, specified as air and rocket defence systems, artillery, missiles, ammunition, drones or drone systems.

The next point concerns the usage of cohesion policy funds under the EU budget, with the decision being taken by the associate States themselves. Additional opportunities and incentives will be offered to countries that will be free to decide whether they want to usage cohesion policy funds to increase defence spending.

Not only EU countries

The last 2 steps focus on mobilising private capital by speeding up the integration of savings and investment and the usage of the European Investment Bank. The president of the European Commission stressed that Europe is ready to take work in this regard.

There are rather intensive discussions with various countries, which Poland is the leader of. I'm rather optimistic about this bank. It is not that a bank is set up within a month, but given the determination to increase defence spending, a bank that is alternatively intergovernmental alternatively than based on the European Commission has a good chance of success – said Agnieszka Bartol, Polish typical to the Union.

The Bank would besides be open to cooperation with non-EU countries specified as the UK and Norway.