Now is the moment for a multilateral defence bank

A trade economist, who is the chief executive of the Centre for Economic Security, warns that global credit markets are showing signs of distress, potentially leading to a rapid deterioration in credit conditions and impacting defense industries heavily reliant on specialized financing. To address this issue, finance ministers from Europe, the UK, Norway, Canada, Australia, Japan, and international partners are urged to establish a new multilateral institution, the DSR Bank, aimed at financing long-term defense resilience and capability. The DSR Bank would provide guarantees and funding to support joint procurement, boost industrial output, and stabilize supply chains in strategically valuable sectors, emphasizing the importance of shared responsibility in maintaining credible deterrence amidst geopolitical competition.

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