The EU should work on a plan to issue €100 billion ($107.8 billion) Eurobonds to boost the continent's defense industry and provide more weapons to Ukraine.
This was stated by Estonian Prime Minister Kaja Kallas in an interview with Bloomberg.
— We are at a point where we need to invest more and [explore] what we can do together because the bonds that will be issued by individual countries are too small to scale. Eurobonds could have a much greater impact, — she thinks.
The idea of exploring the possibility of joint borrowing to strengthen Europe's defense capabilities was also supported by French President Emmanuel Macron and European Council President Charles Michel. More frugal countries such as the Netherlands and Germany will likely be less interested.
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Callas also remains optimistic about the decision of the US Congress on funding for Ukraine after meetings in Munich with American lawmakers.
— The feeling was that by being here, they might also have a better understanding of what's at stake, — she emphasized.
At the same time, she noted that there are other, more urgent steps that the EU must take to help Ukraine, focusing on developing its industry and securing long-term supply contracts, in particular through a deeper study of reserves weapons and searching for supplies around the world.
— We must do everything. Europe has done a lot and must do even more. This is obvious — added the Prime Minister of Estonia.
And called on allies to fulfill their promise to spend 0.25% of GDP over the next four years to support Ukraine.
NATO defense spending
Earlier, Secretary General Jens Stoltenberg said that European allies are working to achieve NATO's goal — spend at least 2% of GDP on defense.
European allies and Canada will add more than $600 billion to defense spending since the 2014 investment pledge, he said.
Last year saw an unprecedented 11% increase in defense spending among European allies and Canada.
