(MENAFN) EU finance ministers are set to meet this week to discuss a new defense procurement and leasing system that could involve Ukraine, according to Reuters. The proposed European Defence Mechanism (EDM) aims to help EU countries, and potentially non-EU members like the UK, Norway, and Ukraine, acquire expensive military assets without violating national debt limits. This mechanism would allow EU nations to lease costly weaponry, such as fighter jets and military satellites, with subsidized lease rates for frontline states near Russia.

The EDM would be funded through its own capital and could borrow money, with a dedicated trust to support subsidized leases. This initiative is part of the EU's broader multibillion-euro military strategy. EU leaders remain committed to supporting Ukraine against Russia, despite opposition from some member states like Hungary and Slovakia, who argue that sanctions and military support are damaging to the EU economy. The EDM aims to streamline European military spending, similar to the US Pentagon's procurement model, to avoid fragmentation among EU members.

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