Germany Disagrees with Italy, France over Defense Fund Financing
Berlin has rejected calls by Paris and Rome to finance a proposed €5-billion E.U. defense fund through new debt and exempt national contributions from the bloc's budget deficit rules.
The German government has rejected calls by France and Italy to finance a proposed €5-billion ($5.3 billion) E.U. defense fund through new debt, according to a government positioning paper obtained by Handelsblatt.
In the paper, Berlin says financing the fund with bonds would “contradict the fundamentals of good budget management and is therefore not a viable option for financing European defense efforts.”
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