Tag #Common Borrowing

What are the immediate implications of the proposed European defense funding mechanism on EU cohesion policies and member state budgets?

The European Commission proposes bolstering European defense through member state borrowing, with a €150 billion low-interest loan facility and a "escape clause" excluding these loans from deficit calculations. This approach, however, risks undermining cohesion policies by diverting funds and potentially exacerbating social inequalities.