The European Union is considering setting up a €500 billion joint defence fund to finance joint defence projects and arms purchases. The initiative would use bond markets to raise the extra money, an unprecedented move for the EU. The Financial Times reports that the idea was prompted by the prospect of Donald Trump returning to the White House.

One of the main reasons for the discussion of radical measures was Trump’s repeated statements in recent years about the possibility of reducing US security guarantees for European NATO allies. The former US president’s policies caused alarm in European capitals, especially among countries traditionally dependent on American protection.

The idea of ​​borrowing to finance defense spending has long faced resistance from some EU countries, such as Germany, the Netherlands and Denmark, known for their strict budget policies. But the threat of weakening American support in the face of growing global challenges has forced even fiscal conservatives to reconsider their positions.

According to the plans under discussion, the fund will be used to modernize the armed forces of EU countries, develop joint defense technologies and purchase strategically important equipment, including missile defense systems and new combat platforms. The program also provides for stimulation of domestic production, which will allow EU countries to reduce their dependence on external suppliers, including the United States.