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Britain and Northern European allies weigh JEF bank to fund regional rearmament

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The British government is exploring plans to establish a UK-led “defense bank” designed to facilitate the rearmament of Northern European allies against Russia.

According to reports from The Telegraph, the initiative could be modeled on the European Union’s €150 billion SAFE program, which provides financing for member states’ arms acquisitions.

The proposed “JEF bank”—named after the Joint Expeditionary Force—would enable the 10-nation alliance to finance security projects by borrowing at significantly lower interest rates. In addition to the United Kingdom, the JEF comprises Norway, Finland, Sweden, Estonia, Latvia, Lithuania, Denmark, Iceland, and the Netherlands.

Last month, three member nations—the UK, Finland, and the Netherlands—committed to beginning work on the JEF bank mechanism. The fund is intended to finance multinational defense initiatives, expand industrial production, facilitate weapons procurement, and provide military assistance to Ukraine.

A source familiar with the process indicated that discussions are currently in an exploratory phase.

According to the report, an announcement could be fast-tracked to occur before early July, when NATO leaders are scheduled to gather in Ankara for their annual summit. The agenda for that high-level meeting is expected to be dominated by demands from Donald Trump for allies to announce plans to increase defense spending to 5% of GDP over the next decade.

It remains uncertain whether the US president will attend the summit in the Turkish capital, following threats to withdraw from the alliance after Europe declined to participate in a potential US-Israeli conflict against Iran.

However, NATO Secretary General Mark Rutte has signaled that he expects allies to present concrete plans to fulfill defense spending pledges made during last year’s meeting in The Hague.

The United Kingdom appears to be facing challenges in securing the £17.6 billion required to meet the government’s commitment to raise defense spending to 3% of GDP by 2029-2030. Reports emerged last week that Chancellor of the Exchequer Rachel Reeves is considering the sale of “war bonds” to the public and financial institutions to generate necessary funds.

Extending such a plan to other JEF allies could allow the group to leverage a collective AAA credit rating, thereby reducing borrowing costs. The capital raised would be directed toward joint projects aimed at deterring “Russian aggression” in the Arctic, the North Atlantic, and the Baltic regions.

This week, the alliance agreed to bolster its naval presence in these areas in response to Russian subsea and surface operations. Military leaders, including General Sir Gwyn Jenkins, have emphasized that the group must evolve beyond a simple coalition into a permanent joint force capable of countering potential threats from Moscow.

A government spokesperson stated:

“To ensure the United Kingdom is prepared to respond to increasing threats, we have committed to a £270 billion investment in defense over the course of this parliament—the largest increase since the Cold War. Defense spending will rise to 2.6% of GDP by April 2027. An additional £5.6 billion in resources will be allocated to defense this fiscal year alone, ensuring there is no return to the hollowed-out Armed Forces of the past.”

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EU states hold talks with Taliban in Brussels on Afghan returns

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Representatives from 15 European Union member states met with the Taliban in Brussels on June 23 to discuss the return of Afghan nationals to Afghanistan.

A European Commission spokesperson said on Tuesday that the meeting was co-chaired with Sweden. Belgium and the Netherlands also took part.

The Commission stressed that the discussions primarily focused on the return of Afghan citizens with criminal records or those considered security threats.

Talks covered a wide range of issues, including the identification of returnees, the issuance of travel documents and procedures related to their repatriation.

However, Johannes Luchner, a senior European Commission official who travelled to Kabul in January, had previously indicated that the scope could extend beyond convicted individuals.

Addressing European lawmakers at the end of January, he said: “Our primary concern is the return of criminals, but the number of non-criminal Afghans who have received return orders is also increasing.”

Another EU source has now expressed a similar view. Speaking to EUobserver on Tuesday ahead of the meeting, the source said the discussions would also cover the return of asylum seekers whose applications had been rejected.

Earlier in the day, the Commission declined to provide details about the meeting.

As a result, questions remained unanswered regarding who covered the Taliban delegation’s travel expenses, where the meeting would take place, whether women would participate and what the Taliban expected in return for assisting the EU with deportations of Afghan nationals.

The EU and its member states have not recognised the Taliban government since it returned to power five years ago.

Brussels defended its decision to maintain limited contacts with Afghanistan’s “de facto authorities,” arguing that such engagement is necessary to facilitate the deportation of rejected asylum seekers who have committed crimes or are considered dangerous.

A European Commission spokesperson said officials from the Commission and 15 EU member states attended the Brussels meeting, which followed a previous gathering held in Kabul in January.

“The Commission services and Sweden today co-chaired a technical-level meeting in Brussels together with technical-level representatives of Afghanistan’s de facto authorities responsible for return and readmission matters,” the spokesperson said.

A spokesperson for Afghanistan’s Foreign Ministry said the agenda was broader and included the possibility of a future consular presence in the EU, the resumption of consular services for Afghans living there and “the need for confidence-building measures.”

Spokesperson Abdul Qahar Balkhi added that the meeting raised hopes of creating “positive momentum to safeguard the consular rights of Afghans residing abroad.”

According to a European Commission letter addressed to Balkhi and reviewed by Reuters, the discussions would focus on “the return and readmission of Afghan nationals without a right to reside in the EU.”

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EU defence chief calls for integration of Ukraine’s military into European defence architecture

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The European Union’s Defence Commissioner, Andrius Kubilius, said the bloc should integrate Ukraine into a future European defence union, speaking at the European Defence and Security Summit in Brussels.

According to remarks reported by Reuters, Kubilius said: “It would be difficult to make sense of things if we did not regard the integration of Ukraine’s armed forces into our defence architecture in Europe as a vital issue.”

Kubilius stressed that Ukraine currently holds a dominant position on the battlefield thanks to the transformation of its military doctrine.

Calling for the integration of Europe’s defence industry and Ukraine’s manufacturing facilities into a single military structure, Kubilius said Ukraine should be fully integrated into the EU’s military market.

He added that the European Commission could present a detailed analysis of the defence market and initial proposals for next steps as early as next week.

At a later stage, the commissioner said, the Commission would propose changes to defence procurement rules and other market regulations.

Kubilius also outlined a strategic objective for the European Union.

He argued that EU member states should spend around €7 trillion on arms production over the next decade in order to surpass Russia in military strength and weapons stockpiles. According to Kubilius, such spending would be consistent with commitments under NATO to raise defence budgets to 5% of gross domestic product.

Urging Europeans to be prepared to bear the cost, Kubilius described it as “the price of peace.”

At the same time, he suggested moving away from the production of highly sophisticated weapons that are difficult to manufacture in large quantities. Instead, citing the example of drones used in Ukraine, he called for a focus on producing “enormous quantities of satisfactory weapons.”

The EU Defence Commissioner also underscored the need to integrate Ukraine’s innovative defence industry into Europe’s broader defence and technological base.

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Hungary blocks joint EU letter backing Ukraine and Moldova accession process

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Hungary has refused to endorse a joint letter intended to be sent on behalf of all 27 European Union member states to the European Council and the European Commission in support of Ukraine’s and Moldova’s accession to the bloc.

According to Politico, citing sources familiar with the matter, the letter is required for Kyiv’s and Chisinau’s membership applications to advance to the next stage of the accession process.

The sources said Hungary was the only member state that declined to back the document. Because approval requires the consent of all 27 member states, the issue is expected to be revisited next week.

Hungary, which previously blocked Ukraine’s accession negotiations for an extended period, was led at the time by Prime Minister Viktor Orban. His successor, Prime Minister Peter Magyar, has not opposed the launch of the negotiation process but has insisted on removing the phrase “as soon as possible” from the draft letter’s reference to Ukraine’s accession.

Magyar said Hungary does not support opening all negotiating chapters simultaneously in an effort to accelerate Ukraine’s membership bid.

Explaining the government’s position, he said: “Partly because the ink on the documents relating to the first chapter has barely dried, and partly because this would send the wrong message to Western Balkan countries such as Serbia, Albania, Montenegro and North Macedonia, which have been working for years to become members of the European Union.”

The European Union formally opened the first chapter of accession negotiations with Ukraine and Moldova in June. The process was launched during a ceremony in Luxembourg attended by the foreign ministers of member states and is divided into six thematic clusters covering different areas of legislation and policy.

The opening of the first cluster, which covers core issues including the rule of law, the functioning of democratic institutions and public administration, marks the transition from the preparatory phase to practical work on meeting accession requirements.

The EU’s ambassador to Ukraine, Katarina Mathernova, has said Kyiv could join the bloc by 2030, although the final timeline will depend on how quickly the Ukrainian authorities complete the required legal and institutional reforms.

Mathernova also said she hoped all 33 negotiating chapters could be opened by the end of the summer.

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