European Union countries on Wednesday agreed to set up a fund worth €150 billion ($170 billion) for joint arms procurement.

The loans were meant to be used to invest in air and missile defence, artillery systems, missiles and ammunition, drones and anti-drone systems.

European Commission President Ursula von der Leyen said when she presented the plans in March, it should also be used to address other needs, from cyber to military mobility.

Current rearmament efforts in Europe are intended to deter Russia from possibly attacking another European country after Ukraine.

Intelligence agencies assumed that Russia would be in a military position to start another war by 2030 at the latest.

Pressure on the EU to significantly increase defence spending and aid to Ukraine intensified after Washington suspended U.S. military aid to Ukraine and put its commitment to safeguarding Europe into question.

“We’re living in the most momentous and dangerous of times. This is Europe’s moment and we must live up to it,’’ Ms Von der Leyen said.

Ms Von der Leyen hoped that, together with private capital and additional funding from the European Investment Bank, the fund could mobilise up to €800 billion for defence.

The new fund, which still needs to be formally approved by EU ministers next week, is part of a set of initiatives to improve Europe’s defence capacities.

The commission also allows member states more leeway for defence spending under the EU’s usually strict debt and deficit rules. 

(dpa/NAN)