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The UK has plans in European European countries to build a “supranational institution” jointly buying military equipment, weapons of weapons and helps fund weapons in the whole rearmament.

The informal paper, written by UK officials and seen in financial times, presented the case for a “coalition of market in favorable rates and support Spend the defense.

Supports equity and sovereign, lending money for defense projects and actually obtain military goods, which make military equipment, which makes the military goods, which make the military equipment, which are the common “stockpiles” equipment for countries.

Treasury officials have been taken in the UK, the so-called “non-paper” exchanged last week with key chapters in Europe for discussion but said it does not represent British government policy. “We don’t comment on leaks,” as a UK government spokesman.

While not determined the intended fund size, the paper says that the steps help closing a European defense gaping estimated “hundreds of billion euros”.

Chancellor Rachelador in Britain and his Norwegian counterpart Jens Stoltenberg was invited to participate in a meeting of EU financial mines, which focus on defense. Reeves discussed about defense defense options with matching meetings of G20 ministers in Cape Town in February.

The uncertainty of US security reasons and the powerful pressure from President Donald Trump’s administration prompts European chapters to prompt the great increase in defense expenditure. But many flowed to high deficiency and have a small room to borrow.

An important purpose of new instrument is to “claim assets for subscribed countries” in a financing structure to turn off national budgets.

“Many supranational institutional models can support the addition of fiscal capacity for defense expenditure,” the paper stated.

While proposed funding can help driving commonly taking and giving finance for small defense companies, the main advantage is to stock the weapons and ammunition they pay.

Potential purchases found on paper include military goods such as tanks and plane shells, deportation planes such as helicopters and carriers.

“The institution designed to be classified by the rest of the world at the national accounts and the equipment purchased by one’s own bankruptcy,” the UK writes in balanced countries in “Fiscal Hoadroom”.

“It is avoided at high capital costs of buying budgets of country members,” The role says, to add it to a manner of “compatible with good fiscal management”.

Upon receipt of military equipment, countries will pay the fund and record them on their budgets. “The idea is (that the initial cost can be) in books,” as an officer shortened.

The combined firearm purchases with the advantage of “greater and continuous flow of orders and standardization”, as well as the greater stockpile level held at any time “.

To create additional storage, the entity can also lend the defense companies in commercial but good rates and governments at lower rates than some can borrow themselves.

Another possible use of this multilateral instrument is to underwrite financial exports for the European defense sector: “As well as export exports to exports to export countries.

Paper is one of many initiatives to develop European defense funds.

Unlike EU defense initiatives, such as a € 150bn EU loan facility for defense, this structure can include other countries not EUs like UK and Norway. It also avoids the rules that stood in European investment bank from direct investment to make weapons and ammunition.

“As an institution directed by the defense sector, it can be targeted at a specified investor based finance to defense investors to add defense investors to their portfolio,” it wrote.

Some European chapters take care of the plan. “My definition is not very practical, because it has been a long time,” said an officer who saw the suggestion.

Another European officer said that while they welcomed the UK participation, their main study was “What is on the plate and not completed” – a reference to the EU 150bn plan of the EU plan.

UK raises its defense budget, with an additional £ 2.2bn announced by 2025-26 by Reeves last week. Money is a step toward the development of British defense expenses from 2.3 percent of GDP to 2.5 percent from 2027, an increase worth of £ 6bn per year.

Extra Report: Lucy Fisher and Sam Fleming in London