The world has become a much more hostile place of late, and not all countries can afford to keep up in the arms race, particularly with the latest technologies being deployed in drones and cyber warfare. That is why Canada is launching a new multilateral defence bank to help countries secure funding for defence projects.
The Defence, Security and Resilience Bank, spearheaded by Canadian Prime Minister Mark Carney, is still looking for a headquarters in his native Canada, but will establish its European headquarters in Luxembourg. Carney states that this bank will enable small and medium-sized defence companies to meet the increased demand, particularly within the European Union, in the wake of the war in Ukraine.
The bank aims to raise $135,000 million and intends to offer cheaper financing than, for example, the European Union's loan programme. However, industry analysts expect greater clarity on which countries might back the bank next month, during the NATO meeting in Ankara, according to Reuters.