The Netherlands, the United Kingdom, and Finland want to set up a new credit institution for defence projects. Participation would be limited to countries with a high credit rating. The aim is to strengthen the defence industry and support the rearmament efforts of Western countries.
The proposed Multilateral Defence Mechanism (MDM) would be open to additional participants, but is intended for a core group of NATO allies. The European Union already has initiatives for joint purchasing and borrowing for defence projects. However, the United Kingdom, which has one of Europe’s largest defence industries, is largely excluded from these efforts. London and Brussels have been unable to agree on the conditions.
The MDM is designed to help combine orders from several countries and make joint procurement easier. It would also be able to lend funds multiple times, increasing its overall impact. The new mechanism is expected to be launched no later than next year.
@anp | NEWS BRAINPORT
