news 
European Officials Pitch New Idea to Shore Up Defenses Amid Trump’s Return
As former President Donald Trump prepares for his potential 2024 re-election bid, top European officials have proposed a novel plan to bolster military defenses and strengthen the continent’s economic resilience. The innovative concept involves establishing a Defense Security Reserve (DSR) bank to facilitate defense modernization efforts, leasing equipment, currency hedging, and supporting critical infrastructure development in conflict zones.
According to a Financial Times op-ed by Andrew Jeglinskas, the DSR bank would issue bonds backed by AAA ratings for financially strained nations to upgrade their defenses. This move aims to address the current challenges faced by European countries in accessing capital markets to fund defense programs.
“We need to create some sort of mechanism, and that kind of global defense bank would be one of the tools that we could use to rally the capital and really direct it toward defense,” Jeglinskas emphasized.
The proposed institution would not only provide loans with extended maturities for defense companies but also help underwrite risk for commercial banks. This move would enable them to extend financing to defense firms across the supply chain, particularly small and medium-sized enterprises that often struggle with access to funds.
Jeglinskas likened the concept to the European Investment Bank’s long-term loans and guarantees to projects aligned with EU policy goals. However, he noted that even the EIB is restricted in its ability to fund dual-use technologies. The DSR bank would create a new mechanism for Europe to address this limitation and align defense funding priorities.
“This is not a bank that is going to be financing just one or two countries; it’s a global institution,” Jeglinskas emphasized. “It needs to have the capacity to finance the entire European defense effort.”
While Trump has yet to officially announce his 2024 presidential bid, this proposal highlights the pressing need for innovative solutions in defense and security.
Source: http://www.foxnews.com
