The cash-strapped state of some member countries means that the EU needs to find additional options to finance years of underinvestment and the creation of new pan-European instruments was among topics discussed.
In contrast with options put forward so far based only on soft loans, Spain wants to provide also EU grants to countries — in particular the East, which is more exposed to the Russian threat.
Spain’s proposed tool, designed as a special purpose vehicle, would be financed by contributions from member states, join EU debt, and the European Stability Mechanism rescue fund.
In addition, Madrid said part of the immobilized €200 billion ($227 billion) Russian central bank assets held in Europe could also be used to finance military projects to benefit Ukraine.
This would represent a bolder and more controversial step as some countries, including Germany and Belgium, still resist using the underlying assets fearing consequences for the financial stability of the region and the role of the euro.
Posted by John3262005