EU plans to create a defense fund of 500 billion euros: who can join.

The European Union may create a large-scale defense fund worth 500 billion euros for joint defense projects and arms procurement. The funding is expected to be raised through the issuance of bonds.

According to Financial Times, the initiative emerged in response to Donald Trump's statement about the possible cancellation of security guarantees for NATO allies that do not invest enough in defense.

The funding promises the issuance of bonds backed by guarantees from member states. Importantly, the fund will be open to countries outside the EU, including the United Kingdom and Norway.

European Commission President Ursula von der Leyen established the amount of 500 billion euros as the minimum necessary to ensure Europe's security over the next decade.

This money could be used to implement joint defense projects. For example, Poland and Greece have already proposed the creation of a unified air defense system.

The European Investment Bank is expected to take on the organizational and treasury role. However, the bank will not have the right to finance investments in armaments.

Neutral EU member states, such as Austria, Malta, Ireland, and Cyprus, will be able to opt-out of the project without vetoing it.

According to Greek Prime Minister Kyriakos Mitsotakis, the increase in defense spending will primarily benefit Germany and France, as well as Italy and Spain, which are major players in the defense sector.

Deputy Minister of Finance of Poland Pawel Karbownik emphasized that Europe has no choice but to increase investments in defense.

The Netherlands, Finland, and Denmark generally support the initiative, but Germany's position will depend on the results of the February federal elections.