Europe’s conundrum: How to fund protection spending

London –
With a conflict raging on the European Union’s jap border, Russia posing a menace, and U.S. President-elect Donald Trump pressuring allies to do extra, the bloc urgently wants a viable plan to safe tons of of billions of euros to bolster its defenses.

But whereas there may be broad settlement Europe must be spending extra, all potential choices — governments boosting their nationwide budgets, joint EU borrowing or creating a brand new funding automobile — include their very own challenges, comparable to fiscal pressures, political resistance or funding prices.

The bloc estimates €500 billion ($524 billion) of investments are wanted within the coming decade, although its new protection chief argues that will solely cowl an air protection program.