EU considers defence fund to ease debt concerns for military gear


FILE PHOTO: A European Union flag flutters outside the EU Commission headquarters, in Brussels, Belgium, February 1, 2023 REUTERS/Yves Herman/File Photo

BRUSSELS (Reuters) - European Union finance ministers started talks on Saturday over a joint defence fund that would buy and own defence equipment and charge members a fee for its use, as a way to spend more on defence without burdening national accounts with more debt.

The fund, called the European Defence Mechanism, was proposed by the Bruegel think tank in a paper for the ministerial discussions as a way of addressing concerns about how highly-indebted countries could pay for costly military equipment.

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