Reuters has learned about the EU's plans to use a $500 billion fund for defense loans.

The European Financial Stability Facility with a volume of $514 billion, designed to prevent the eurozone crisis, can be used to provide defense loans to EU countries. This was reported on January 30 by the Reuters news agency, citing the head of the organization.

"The ESM can provide credit lines for defense needs and will not require harsh economic reforms in return, partly in order to dispel any prejudices that may arise from applying to the eurozone emergency fund," said Pierre Gramegna, head of the fund.

Gramegna believes that such loans may be relevant for countries with a good financial situation but limited budgets.

The head of the organization drew attention to the growing geopolitical tensions and the deterioration of relations between the EU and the United States and called these the reasons why European countries have recently begun to spend more on defense.

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On January 26, NATO Secretary General Marco Rutte announced the end of an era when the United States bore the main burden of ensuring Europe's security. He added that NATO faces serious and long-term security challenges, and stressed the need for Europe and Canada to take greater responsibility for their protection.

The Financial Times newspaper reported last December that the UK government would need to raise $1.1 trillion to finance defense projects and strategic infrastructure by 2040 in order to achieve NATO's goals.

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