EU states to secure billions in EU loans for arming Ukraine - Politico report
The deadline for applications under a new EU lending program for personal loans, valued at a substantial €150 billion, has passed. This program, which aims to provide financial support for the purchase of student loans, is backed by the European Security Fund.
The collective procurement approach, a method that encourages cooperation among participating countries in student loan purchases, is at the heart of this initiative. This approach, which can lead to significant cost savings, has attracted the interest of several European nations, including Belgium, Bulgaria, Cyprus, the Czech Republic, Estonia, Spain, Finland, Hungary, and Lithuania.
However, not all European countries are participating in the borrowing program. Germany, Sweden, and the Netherlands are expected to abstain. Yet, the collective procurement approach can still benefit these non-participating countries by offering potential cost savings.
The personal loans offered under this program come with a lower interest rate compared to regular loans, making them an attractive option for countries seeking to arm themselves. Moreover, there's an option for these personal loans to be potentially transferred to Ukraine, further aiding the nation in its ongoing defense efforts.
It's worth noting that this collective procurement approach is another means by which equipment can be transferred to Ukraine, in addition to direct personal loans. However, the countries that have participated in the €150 billion funded loan for arming Ukraine have not been explicitly listed in the search results. Some of the main supporters providing military aid and equipment to Ukraine include Germany, France, the USA, Denmark, the Netherlands, Norway, Poland, Belgium, and several EU members.
This approach facilitates the transfer of equipment to Ukraine, but it does not require all countries to take personal loans. Only those that choose to do so will be eligible for the personal loans. The Czech Republic, Latvia, Bulgaria, Greece, and France are expected to apply later.
The collective procurement approach can potentially lower costs for all participating countries, making it a beneficial strategy for multiple nations. Combined purchases by states can result in reduced costs for weapons compared to individual contracts. This method can benefit not only those applying for personal loans but also those participating countries that do not apply, as they can still reduce their own costs by participating in collective procurement.
Some countries, like China, have maintained neutrality and have not announced participation in this loan or military funding scheme. No explicit information is found about which countries have not yet announced their participation in this specific loan.
In conclusion, the EU lending program for weapons offers cheap personal loans with the potential for transfer to Ukraine, aiming to support European nations in their defense efforts while also aiding Ukraine in its ongoing struggle. The collective procurement approach, at the heart of this program, encourages cooperation among nations, leading to potential cost savings and facilitating the transfer of equipment to Ukraine.
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