The Managing Director of the European Stability Mechanism (ESM) stated that a crisis fund worth over €430 billion ($514 billion) could lend money to countries for defense spending. This announcement opens new opportunities for EU member states amid the growing need to strengthen military capabilities.
According to the institution's head, the fund's existing financial instruments can be adapted to support the security sector. While the ESM was traditionally used to stabilize the eurozone economy during debt crises, the current geopolitical situation requires flexibility in resource allocation.
"We can provide loans to states for defense expenditures if they meet the established criteria," the ESM head noted. This means countries will be able to direct borrowed funds to modernize their armed forces and purchase equipment without violating EU budgetary rules.
