Brussels: European Union (EU) member states have agreed to launch a USD 168.3 billion (150 billion euros) fund aiming to ratchet up Europe's defense capabilities, an official privy to the matter said on Monday.
According to Kuwait News Agency, the agreement comes after weeks of negotiations over a proper mechanism to finance the plan, which entails joint borrowing and the provision of loans to EU member states, in addition to Ukraine. The initiative is expected to increase arms sales across Europe.
The EU's legislative arm had initially proposed the fund last March. This initiative aims to pave the way for investments of up to 800 billion euros in the continent's arms industry, with the ultimate goal of boosting Europe's defense capabilities.