The EU is considering redirecting €93bn in untapped pandemic recovery funds into its defence sector as part of efforts to increase investment and military spending after the Trump administration warned it could withdraw US security support from the continent.
European Commission president Ursula von der Leyen mentioned the financing option at a meeting of the centre-right European People’s party on Tuesday, according to four people with knowledge of the discussion.
The bloc’s additional financing needs for defence are estimated at about €500bn over the next decade.
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