The head of the European Stability Mechanism (ESM) has said that cash-strapped Eurozone countries (those EU countries that use the euro as their currency) can tap into its €430 billion worth of reserves to increase military spending. The EU has already borrowed tens of billions of euros to boost its defense budgets and arm Ukraine.
Speaking to Reuters on Jan. 30, ESM Director Pierre Gramegna said that the fund—which was originally intended as a lender of last resort to bail out debt-ridden economies during the financial crisis—could be used to let countries increase their defense spending on credit.
