EU capitals have reached a political agreement to establish a €150 billion loans-for-arms fund, marking a significant shift in defense policy influenced by Russia’s war in Ukraine and U.S. pressures for increased European security spending. This initiative, proposed by the European Commission earlier this year, will enable EU countries to borrow funds from Brussels for joint procurement of military equipment. The formal agreement is expected to be finalized on Wednesday, following extensive negotiations regarding the allocation of the funds.
